Crude Oil Market Poised To Test Key Support Area - Very Bearish Technical Signal If Broken

This support area currently between $44.00-45.00 basis the spot April 15 WTI crude oil contract is a 16-year trend line support first reached in February as the market bottomed out at a 43.58 low.

This trend line is again being tested in current trade.  If it holds, the longer term uptrend of higher highs and lows that has been in place since 1998 will remain intact.  A long term low could also be set in the market.

However, if trend line support fails and the 43.58 February low is broken as support, the longer term trend will turn down with the 32.40 low from December 2008 then becoming the next longer term support.