Crude Oil futures (symbol: CL) are again testing critical support in the $92-94 range. Prices are again challenging the long-run downtrend line which emanates from the 2008 high. Failure of this support range suggests a test of the $84-85 level is likely. Maintaining support in the $92-94 range suggests a test of the $112, and possibly $130 level.
See our previous post dated 01Nov13, http://murphycofutures.com/crude-oil-testing-support/
Our view based on COT data is unchanged, we expect $92-94 support will give way.
Murphy & Co’s Crude Oil model is currently short. To learn more about Murphy & Co’s position models, visit http://murphycofutures.com/position-models/.