Crude Oil Market Continues to Tease Us With It's Sideways Action

The crude oil market continues to tease us with its sideways action. While this market has been trending to the upside, we want to pay particular attention to the uptrend line from August 9th through today. We do not think that the crude oil market is ready to go higher based on our long term monthly Trade Triangle, which continues to be negative for this market.

The $90 a barrel resistance continues, as the market has had a difficult time moving over that area and maintaining a positive close above that zone. Look for crude oil to continue to move in a sideways to lower manner.

Crude oil closed higher on Thursday and remains poised to extend the rally off August's low. The high range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher prices are still possible near term.

Closes above the May-July downtrend line crossing near 92.64 would confirm an end to this summer's decline. Closes below Monday's low crossing at 85.17 would confirm an end to the corrective rally off August's low.

First resistance is Tuesday's high crossing at 90.60. Second resistance is the May-July downtrend line crossing near 92.64. First support is Monday's low crossing at 85.17. Second support is the reaction low crossing at 83.47.

Monthly Trade Triangles for Long Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = + 70

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