Oil Makes a Slight Move to the Upside
With stocks taking a turn to “Bear Street” today, the Oil market stayed on the other side of town with the bulls. The price of the March Crude contract (CLH8) as of this writing is 89.90, marking the first day the bulls have come out on top over the last three sessions.
On the chart, we see that Crude closed below both moving averages, indicating a fairly rapid downward slide. After spending much of the day above the $90 mark, that level ultimately appeared to act as a point of resistance, similar to the behavior we noticed around the $100 mark a few weeks back.
If $90 is indeed a resistance point, the next level of support is around the 78 level. Keep in mind that if you are bearish right now, the next point of strong resistance is around the 95 level, which still represents an almost 5% movement in the underlying.
Mike Tosaw, Director of Education
