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COT: WTI Net-Longs Cut Positions by 16%, a Close Below $90.00 May Trigger Sell Stops:

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COT: WTI Net-Longs Cut Positions by 16%, a Close Below $90.00 May Trigger Sell Stops:

 

Crude Oil has found psychological support at $90 this morning and has consolidated slightly higher. With the dollar continuing to grind higher we are seeing pressure on commodity prices. With major support on the way down at the $92 level and the 100 and 200 day moving average both falling at that level, that will be the line in the sand for shorts and a close back above there will likely encourage additional buying. Until then use this as major resistance. There is not much major support below $90 other than the consolidation seen at that level between November and December and a close below will likely send the market testing $87. Look for a close below 82 in the Dollar Index to provide support to the Crude market. If equities start retreating further this morning, look for Crude to follow.

Resistance - 90.98**, 91.92-92.10****, 92.54***, 93.25**

Support -89.82-90.00**, 89.12**, 88.90*

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