Price Uptrend in Crude Oil Remains Powerful

November crude oil prices recently hit a fresh contract high above $82.00 a barrel. Prices then backed off on some profit-taking pressure and challenged trendline support from an uptrend line drawn off the August low, but could not punch below it. Bulls are still in firm technical command of crude oil and the price uptrend remains very strong.

click on the chart to enlarge
Crude Oil Futures
See at the bottom of the chart that the green ADX line of the Directional Movement Index (DMI) has a reading of 43.74. Any ADX line reading above 30.00 does suggest a strong trending price move is occurring in a market. For the crude oil bears to gain some solid, fresh downside technical momentum, they would have to push and close prices below strong technical support at $77.30 a barrel.
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