The December 14 crude oil contract spiked under 80.00 support in early trade on Monday bottoming out at a 79.44 intraday low. But as the contract couldn’t push under the 79.10 support level, it moved back higher into the close settling the day down 1 cent at 81.00.
Yesterday was a key test of downside support which held and could mark a turning point back higher for crude oil prices following 3 ½ months of relentless selling.
The 10 day moving average at 81.55 today is the first area of resistance. The December contract has not closed above 10 day moving average resistance since September 29th.
A breakout above 81.55 followed by 82.00 resistance would turn the near term trend back up with 83.15 and 84.00-84.10 then becoming the next upside resistance areas.
If resistance holds, the lower-80.00 is the first area of support followed by the 79.10 and 79.44 weekly lows. A drop under the weekly lows would turn 74.00-75.00 into the next longer term support.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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