August (NYMEX:CLQ14) has brought sideways to slightly lower price action in the crude oil market and today’s session could bring more of the same in this market. Price currently appears to be finding support around the 97.00 level, making it a valid canidate for a near-term bottom in the crude; however, price has been unable to produce a relatively higher high so thoughts of a market bottom at this point are certainly ambitious at best.
The first, and most impotant level of resistance that price would have to trade above in order for this scenario to gain traction would be the 98.50 – 95.60 area on the chart. This is a band of significnat resistance and will likely keep any corrective rally in check. Above here, there is a Fibo C-zone at 99.10 that trader’s should also be aware of. Until the market can prove itself above 98.60, the momentum in the crude oil market will remains negative.
Sep. ‘14 Crude Oil 30-minute Bar Chart (e-Signal)