The crude oil market remains exceedingly weak with the spot contract on Thursday closing under the 60.00 level for the first time since July 2009.
The January contract settled yesterday at 59.95 and is another 1.00 in today’s early trade as it tests 58.00-59.00 weekly low support.
If this support area is broken, 54.00-55.00 is next with longer term support between 45.00-47.00.
45.00-47.00 represents a three point trend line support on the weekly chart that dates back to 1998 when the spot price was trading near 10.00. The third point of the trend line was the 2008 low when the market bottomed at 32.40.
There is a very good chance this trend line near 45.00 will once again be revisited on this current downtrend in the market. If it holds, the longer term market trend will remain bullish.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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