The crude oil market held above a very important technical support level in last week’s trade but has been unable to hold onto upside gains.
The spot February 15 contract which expires on today’s close fell to a 44.20 low in last week’s trade holding above a 16-year trend line on the weekly chart near the same level. If mid-40.00 support continues to hold, a long term low could be set in the market.
Last Thursday’s 51.27 high is the first area of resistance this week with longer term resistance at former weekly low support between 54.00-55.00.
45.00 extending down to last week’s 44.20 low will remain primary support. A drop under 44.20 would keep the market trend down with 40.00 and the December 2008 low of 32.40 becoming the next downside price objectives.
The weekly Commitment of Trader’s report released on Friday showed funds adding to existing long futures positions in the crude oil market. The funds position is currently estimated at 275,480 contracts, up 6,680 from the previous week.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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