Breaks below lower trend line support
Crude oil is trading near session lows at $42.20. Looking at the hourly chart the price continues the trend lower that started on Wednesday and Thursday. The price stalled against the 200 hour MA on those days, and sellers started to take crude lower from there. Of course the higher dollar has been a help as well.
The price has just moved below a lower trend line at the $42.34 level. Staying below should keep the momentum going. A move back above, may have traders thinking that a temporary low might be in place. Watch the price action. We need to see the sellers.
Where can it go from here if the sellers remain in full control?
Looking at the daily chart, there is a key target level ahead at the $41.53 level. That level corresponds with the swing low from August and the 61.8% of the move up from the year low at the $41.53 level.
