Crude Oil Technical Update - December 14 Contract Approaching Key Resistance Near 80.00

The December 14 crude oil contract broke down to a new 2014 low at 75.84 in early trade last Tuesday but recovered much of the losses by Friday’s close.

The December contract ended Friday’s session at 78.65, down 1.89 for the week but 2.81 above the weekly low.

The trend for the crude oil market remains down but weekly chart support at the 74.00-75.00 held last week which could mark a turning  point back higher.

The 10 day moving average is the first area of resistance today at 79.60 followed by former triangle trend line support near 80.00.   A close back above 80.00 would be further confirmation that a bottom has been set in the market.

If resistance holds, the 75.84 low set last week would likely be retested as support in trade later this week.

The funds increased their net long futures position in the crude oil market last week by 1,228 contracts.  Friday’s Commitment of Trader’s report showed funds long 268,532 contracts as of last Tuesday’s close.

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bullish