WTI Crude Oil Returning To Support Numbers 85.38, 84.34, 83.12

That’s what make me think that there’s two things that can come of this OPEC meeting. One, they cut production amidst pressure from a lot of the major supplier in the group or two, they move another step closer to figuring out that holding together is just not worth it. At 30MM b/d in quotas, there’s little wiggle room for the countries already producing at full capacity and the one or two that still have spare capacity.

May I remind you at this point one of those countries that does still have that spare capacity is Saudi Arabia. It’s easy to tell everyone what to do when you actually are the only country left that can influence supply. My point is that whatever we’re expecting out of this OPEC meeting has a very good chance to become the unexpected.

Crude:
I suppose I’m just ignoring the obvious. We’re in a steady decline here in CL and it’s as plain as day on the charts. The interesting thing is that it’s easing off at a pretty slow pace. We are seeing RSI erode slowly. We’ve had days of hope on the charts, but there’s been weak follow through to the upside.

The volumes have been anemic and it looks as if risk reduction is taking the forefront here with nobody willing to crush the market just yet. We’ll return to support numbers at 85.38, 84.24 and 83.12. Higher sees resistance at 86.65, 87.95 and 89.05. The front spread remains tight with –57 solid support. Flat price pushes higher, but remains steady and sideways.

Trends are only for the affected:
There’s a little push here overnight to give a little look at the uptrend on the 10min chart. The fact is though we’re still fighting an overall feeling of weakness. This mini move has support down to 85.80 and an upside resistance at best of 8.610. Anything above there will need a redraw and it’s tough to see higher today. The 60min chart gives us the downtrend with channel resistance up to 86.75. Support is iffy with trend line looking at several support figures; 84.80 and 84.40.

Techies, some Trekkies
-200 Day MA 93.10
- 100 Day MA 90.76
- 13 Day MA 8737
- 8 Day MA 8726
- 14 Day RSI 44.23

Spread now; roll later
-New year, new spread
- Key support: -67, -73, -77
- Key Rests: -59, -52, -48

By Carl Larry