After holding above 16-year weekly chart trend line support near the 44.20 low on Tuesday, the February 15 crude oil contract reversed course back higher in yesterday’s trade.
The spot contract gained 2.59 or 5.6% in Wednesday’s trade rallying up to but closing under 10 day moving average resistance. The daily settle came in at 48.48.
The 10 day moving at 48.70 has been broken in early trade today which is another bullish signal for the market. 51.00-51.50 is the first area of resistance today with longer term resistance for former weekly lows between 54.00-55.00.
A drop back under the 10 day average at 48.70 would turn the near term trend back down with 46.85 being the next level of support.
Longer term support is the 16-year trend line support which held near Tuesday’s 44.20 low. A drop under this low would keep the primary market trend down with 40.00 and the 32.40 December 2008 low then becoming the next downside support levels.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index – Bullish (turned higher yesterday)
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