The crude oil market has likely set a multi-year price low at the 42.03 level in mid-March 2015. While setbacks are to be expected, the longer term trend is now sideways to higher.
The crude oil market begins a 13th week of trade since first bottoming above 16-year trend line support in January. This support was subsequently tested several times in following trade holding each time. The three previous times this same trend line support was reached dating back to the 1998 low, it took an average of 11 weeks before the final reversal took place.
Last week’s breakout above the early-2015 spot price high near 55.00 was another sign that the market has bottomed. While the market could fall back under the 50.00 level, it is expected that trend line support currently near the 45.00 will continue to hold keeping the market in a longer term bullish uptrend.
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