Crude oil prices remain in a near free fall closing lower on Friday for a 7th consecutive week and also setting a new 4-year spot price low.
The December 14 contract fell to a 73.25 low in early trade on Friday but reversed back higher into the close the settle the day at 75.82, up 1.61. For the week, the contract lost 2.83 or 3.6%.
The trend remains down with Friday’s 73.25 low being primary support followed by 69.50-70.50. Longer term supports from the weekly chart are lows set in 2009 and 2010 between 64.00-65.00
There has been only one daily close above the 10 day since September 29th. The 10 day average was solid resistance during all of last week’s trade on upside breakout attempts and is at the 77.00 level today. A close back above the 10 day moving average could be an early sign of a near term low.
Funds continue to buy the crude oil market as it sinks to new lows for the year. Friday’s Commitment of Trader’s report showed funds long 276,832 contracts (futures only), up 8,300 from the previous week. Funds were long a record high 458,969 contracts near the June 2014 top.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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