Outlook for Crude Oil Is Weakening

01/19/2010 9:37 am EST


Thomas Aspray

, Professional Trader & Analyst

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The recent new rally highs in crude oil were not supported by the volume as the OBV failed to confirm the recent highs. While volume was not impressive on the upside, it has increased over the past few days as crude oil has declined. This is not a positive sign. A drop in the OBV below the December lows will confirm the divergence. The March crude contract has next support in the $75-$77 area with more important support at $72.

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