Fundamentally, the United States, the world's largest consumer of crude oil, is sitting on what I would consider a massive glut of this commodity. We are about 11 million barrels above the 5 year average and about 4 million barrels higher than last year at this time. It begs the question will crude consolidate and head sideways for a time or is it getting ready for the next leg down?
There is a lot going on that should impact this market in a bullish way in my opinion. Problems with ISIS or ISIL in Iraq, the forever ongoing fight over the Gaza strip, air strikes in Syria now, and blah, blah, blah bulls! If these type of events can't make crude go higher then I have to believe that good old fashioned fundamental supply and demand will kick in and push crude oil to new lows for the move.
November crude oil, daily chart
Technically, on the chart below I have placed my favorite technical indicators. They are the 9-day Simple Moving Average (SMA, red line), the 20-day SMA (green line), and the 50-day SMA (blue line). I have also added the Bollinger Bands (BB's, yellow lines) and Candlesticks (red and green bars), each bar represents one day of trading on these daily charts. I have also placed a bright white arrow line pointing lower indicating a long trend of resistance that is holding even after some recent consolidation in the crude oil market.