The crude oil market fell under 16-year weekly chart trend
line support near the 45.00 in late-August falling to a new 6-year low at
37.75.
The rally higher from the late-August low has the spot
October 15 contract once again trading back above former trend line support
currently between 44.00-45.00.
The rally back above trend line support could be an
indication the market has bottomed if prices can remain above 44.00-45.00
support.
The first area of resistance is at the 54.00 level where the
market topped in February. The second area of resistance is the 62.58 May
high.
If crude oil fails to hold above trend line support over the
next few weeks, the trend will remain down with 37.75 being the first area of
support. Longer term support is the 32.40 low from December 2008.
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