The December 14 crude oil contract broke out below 74.00-75.00 weekly low support in Thursday’s trade tumbling to the lowest price since September 2010 in the current overnight session.
The December contract lost 2.97 or 3.8% on Thursday closing the session at 74.21.
A new 2014 and 4-year spot price low was set overnight at 73.25. This low is the first area of support followed by 70.00-71.00.
Former support between 74.00-75.00 now becomes resistance with longer term resistance at the 10 day moving average currently at 77.25.
Bottom line - A relentless downtrend in the crude oil market which shows no sign of ending.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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