The crude oil market begins a third week of trade holding above 16-year trend line support at the mid-40.00 area.
This trend line was first reached two weeks ago as the spot market fell to a 44.20 and held throughout all of last week’s trade. In today’s session, the market fell to a 44.35 early morning low but subsequently recovered.
If this trend line continues to hold over the next few weeks of trade, a long term low could be set in the crude oil market.
If trend line support is broken, it would be a very bearish technical signal for the market turning the 32.40 low from December 2008 into the next downside price objective.
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