No signs of a near term low in the crude oil market as it remains in a steep downtrend falling to new multi-year low almost daily.
After losing 12.1% in last week’s trade, the January 15 crude oil contract fell by an additional 1.90 or 3.2% on Monday closing the day at a new 5 ½ year low of 55.91.
The market is down again in today’s early trade with a current 53.60 overnight low. With 54.00-55.00 weekly low support broken, the next support is between 50.00-50.50.
The downside objective for this current downtrend is for a retest of a trend line support on the weekly chart between 45.00-47.00. This is a 16-year trend line tested on three previous occasions the latest being December 2008 when the market bottomed out at a 32.40 low.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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