The December 14 crude oil contract rallied up to a 79.85 intraday high on Monday but couldn’t clear resistance near the 80.00 area.
As resistance held, the market sold back off into the close with the December contract falling 1.25 to settle at 77.40.
The market trend remains down with weekly chart lows between 74.00-75.00 being primary support. A sell off last week to a new 2014 low dropped the December contract to 75.84 low before rebounding.
The market is currently testing last week’s low as support in today’s early trade. A drop under 74.00-75.00 would turn 70.00 and 64.00-65.00 into the next longer term support levels.
The 10 day moving average at 79.00 is the first area of resistance today followed by former triangle trend line support near 80.00. A close back above 80.00 should signal a near and possibly long term market low has been set.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index- Bearish
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