The January 15 crude oil contract settled higher on late buying during Tuesday’s session but is again under pressure in today’s early trade.
All of yesterday’s .77 gains have been erased today as the January contract falls back toward the new 5 ½ low of 62.25 set on Tuesday.
The next level of support from the weekly chart is between 58.00-59.00 followed by 54.00-55.00.
Longer term support is a trend line that begins at a 10.35 low from December 1998 and extends under two subsequent lows the latest being 32.40 from December 2008.
The next point on this trend line if reached on this current downtrend is between 45.00-47.00.
Former support between 63.72-65.00 now becomes the first area of resistance followed by the 10 day moving average at 66.50. As long as the January contract trades under the 10 day average the trend will remain down.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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