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Pro: Crude Could Fall Further

Roger Milley | Vetta | Getty Images

It seems crude could fall further.

The price of crude oil dropped sharply Friday morning after seeing new swing lows and a close below the 200-day moving average. This market is poised for another leg lower, as the U.S. dollar is making new swing highs, and putting extreme pressure on commodity prices.

(Poll: Are You Buying or Selling Crude Right Now?)

Resistance will now be found on a retest to the initial lows this week at $91.92, with further resistance at the 200-day moving average at $92.10. Only a close back above $92.54 can help this market negate this bearish activity, but much more would be needed to regain buying interest.

(Read More: Technical Indicators Turn Traders Bearish on Crude Oil)

Below $91.48 support, the market has found some support against the $90.98 level so far. Use equities as a gauge for this market, and with an S&P below 1500, look for further downside.

A close below 82 in the dollar index can help bring some support to crude.

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