A small uptick in the crude oil market earlier in the week was quickly sold back down as the down trend resumes.
The January 15 crude oil contract lost 1.69 (2.2%) in Tuesday’s trade settling at 74.09.
Selling has continued overnight dropping the contract toward the 4-year price low set two weeks ago at the 73.22. If this support is broken, the next support areas from the weekly chart are at 69.50-70.50 and 64.00-65.00.
The 10 day moving average is the first area of resistance today at 75.05 followed by the 77.83 high set on Monday.
Bottom line – Bears back in control. How low can it go?
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index- Bearish
Short Term Trend Following Index - Bullish
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