Pro: Crude Could Fall Further
iiTrader Founder & Chief Market Strategist
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.
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.
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.