Crude market oversold?

Crude oil (NYMEX:CLN14) is testing the psychological $100 level today as the market continues to see selling pressure. The early low this morning printed 100.06 and though data out of China last night produced a positive note, German Sentiment and continued demand worries out of Europe continue to persist.

Furthermore, there have been no supply disruptions out of the Middle East which was the driving factor rallying this market to the recent highs. Domestic data today is needed to show a strong note to help stop the bleeding but as investors prepare for a rise in interest rates over the next year, it continues to overshadow the energy market and produce demand worries moving forward.

The 100 day moving average comes in at 100.73 and only a close back above here will encourage a consolidation higher. Only a close back above 101.60-101.80 this week will negate this bearish activity. However, the market is heading to the major downside target of 99.70 and a close below here can begin a new downtrend that could test the 200 day moving average that comes in at 97.47 on the August contract.

 

Resistance –100.73-100.93**, 101.19*, 101.60-101.80***, 102.40-102.47**, 103.19**, 103.60-103.89**, 104.23**,

Pivot – 100.49

Support –100.04*, 99.70***, 98.62**, 97.47

About the Author
Rich Ilczyszyn

Rich Ilczyszyn is Founder and Chief Market Strategist of iiTRADER.com. Rich excels at creating dynamic trading strategies for clients that establish solid positions, while remaining flexible enough to capitalize on market opportunities when they arise. By identifying market trends, breakouts, and failures in a timely fashion, Rich presents clients with the opportunity to realize their objectives while effectively managing their risk.

Rich is featured expert/trader and contributor on CNBC's "Futures Now" Show, and has been quoted in multiple of top-tier publications, including: The Wall Street Journal, Associated Press, Bloomberg News and Reuters.

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