The crude oil market continues to trade lower with the spot February 15 contract approaching 50.00-50.50 weekly chart support in today’s session.
The February contract lost 2.04 or 3.7% during last week’s trade settling Friday at 52.69.
The downside price objective for this current downtrend remains the 16-year weekly chart trend line support between 45.00-47.00.
Whether or not this support holds when reached will be a big technical event for the market. If support holds, the longer term bullish series of higher lows since 1998 will remain in place.
But if trend line support is reached and doesn’t hold, the 32.40 low from December 2008 will become the next longer term objective.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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