The January 15 crude oil contract on Wednesday closed higher for a second consecutive day, the first time this has occurred in over 7 weeks.
Recent gains have been minimal with the January contract gaining 2 ticks on Tuesday and another .54 in Wednesday’s session to close the day at 56.47.
Profit-taking following release of the FED meeting results has stemmed the extreme selling in the market but the primary trend remains down. Tuesday’s 53.60 low is the first area of support followed by 50.00-50.50.
Longer term support and the downside objective for this current down trend is 16-year weekly chart trend line at the 45.00-47.00 level.
Upside resistance for today begins at yesterday’s 58.98 high at 59.70. The 10 day average would be a good selling area if reached.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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