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Wednesday, January 7, 2015
Crude Oil Technical Update - Approaching 16-Year Trend Line Support
The crude oil market on Tuesday traded under the 50.00 level for the first time since 2009. The February 15 contract has been heavily sold over the past three days losing 2.11 or 4.2% on Tuesday to settle at 47.93.
The February contract is approaching a key area of support which will be an important technical test for the market. This support is a 16-year trend line on the weekly chart between 45.00-47.00 that begins in 1998 The current overnight low is 46.83.
If trend line support holds, the market could reverse back higher. But if trend line support doesn’t hold, the 32.40 December 2008 low will become the next downside objective.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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