The January 15 crude oil contract has fallen to a new 4-1/2 spot contract low in the overnight session at 67.75.
Prior to recent selling, the contract had been consolidating above support at the lower-73.00 area which now becomes primary resistance in addition to the 10 day moving average currently at 74.50.
The next longer term support levels under the 67.75 overnight low are weekly lows from 2009-2010 at the 64.00-65.00 level. If this support is broken, 58.00-59.00 is the next stop.
Funds were long over 255,000 crude oil contracts according to last Friday’s Commitment of Trader’s report. Not a good way to end the year.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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