The crude oil market continues to show almost no underlying buying support as the spot price falls under the 50.00 level for the first time since April 2009 in the overnight session.
Selling intensified on Monday as traders return from the holidays dropping the February 15 contract lower by 2.65 or 5% settling at 50.04.
50.00 support has been broken in the overnight session turning 16-year trend line support between 45.00-47.00 into the next downside support.
This trend line has been the downside objective for this current downtrend that began in mid-June with the spot price trading over the 100.00 level.
If 45.00-47.00 trend line support fails to hold, it will be another bearish technical signal for the market turning the 32.40 December 2008 into the next longer term support.
But if trend line support does hold, it could be a turning point back higher for the market.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Long Term Trend Following Index - Bearish
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