The December 14 crude oil contract remains in a bearish technical downtrend retesting key weekly low support in early trade today.
This weekly low support at 75.84 set last week extends down to the lower-74.00 level and is long term support area. A drop under 74.00 would turn 70.00 and 64.00-65.00 which were weekly lows from 2009 and 2010 into the next downside support.
The 10 day moving average which held again as resistance in yesterday’s trade is the first area of resistance today at 78.05. Longer term resistance is former triangle trend line support near 80.00 which held as resistance on Tuesday.
A close back above 80.00 would be a bullish signal for the market possibly indicating a market low has been set.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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