TECHNICAL ANALYSIS
Crude oil futures (CLZ22) closed lower on Friday the 30th, ending the month of September down $10.06 a decline of 11.24%. The DEC futures pulled up short of same targets in the 7276/7212 area before getting a bounce back above $80 mid-week before settlings just below that level Friday. On the weekly, the DEC futures managed a small upside reversal as that chart remains in deeply oversold territory. The market continues to see lethargic volume and open interest on the decline. Open interest in crude oil futures is now at the lowest levels since 2011 while prices remain in the upper third of the past two decades (including the pandemic negative trade of -$40.32 in spot futures).
Weekly Crude Oil Futures Spot
Short-term, CLZ22 is slightly oversold on the hourly with the DEC retracing about 50% of the pop off the 7570 low set on September 27th. Support is right here at the 7810/7800 level and a breakdown below that should test 7718 with counts back to the 7570 low. There is key longer-term support at 7502 and taking that out should take the CLZ22 to the targets at 7276/7212. The 7200 level represents some strong long-term support for CLZ22 and closes below that suggest critical support of 6658/6640 with long-term counts to 6020.
Resistance short-term is at 8018 and 8060/8065. Rallies back over 8065 should retest last weeks highs at 8199 with strong short-term resistance at 8225/8230. A drive over 8230 suggests a move to pivotal resistance at 8381/8390. Closes back over 8390 set up a drive to 8565 with counts to critical short-term resistance at 8795/8810. Closes over 8810 are bullish and would suggest moves back into the 9384/9555 area for the December futures.
Charts courtesy of CQG, Inc.
