The new front month January 15 crude oil contract has broken out above 10 day moving average resistance at 76.00 in the overnight session.
There has only been one daily close above the 10 day average since early-October and today’s breakout could be an early signal of a near term trend turn back higher.
In yesterday’s trade, the January contract was fairly well bid throughout the session closing at 75.85, up 1.35.
Former daily low support from mid-October at 78.64 now becomes the next area of resistance today followed by 80.00. Longer term resistance is the 40 day moving average at 81.25.
The 10 day moving average at 76.00 now becomes primary support. A drop back under this average will turn the near term trend back down with the 73.22 low set last week becoming the next downside objective.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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