The crude oil market late last week rallied higher from a 16-year trend line support.
This trend line was first reached three weeks ago at the mid-40.00 level. The market pushed down to a new 6-year low of 43.58 last Thursday but moved higher into Friday’s close settling the week at 48.24.
It is still too early to call a low in the crude oil market but if trend line support continues to hold, it should indicate a long term bottom has been set in the market.
If trend line support is broken and the spot March 15 crude oil contract closes under last week’s 43.58 low, the primary trend will remain down with the 32.40 December 2008 low then becoming the next downside price objective.
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