In the oil market, as in the U.S stock market, there are fundamental analysts and technical analysts.

Fans of fundamentals follow things like inventory levels, global oil demand, and refinery capacity. Fans of technicals follow things like the 50-day and 200-day moving average and chart formations (double tops, double bottoms, etc.).

Moreover, rarely do these two analytical schools merge in one trader: you're usually either a fan of fundamentals or technicals.

A 'hybrid' trader

Energy trader Jim Dietz breaks the mold. He's a hybrid trader, of sorts. He primarily follows fundamentals, but gives technical analysis its proper respect, and currently on the chart are two, technical oil price levels that are worth paying attention to, as they are likely to provide clues regarding oil's direction, he said. Dietz added that he is presently flat, or had no open energy trading positions.

Oil, Dietz said, "has closed below support in the $115-116 range for two days in a row." Tuesday would be the third, if it closes below $115, and if it does, that would be bearish for oil, he said. Oil was down 29 cents to $112.58 in mid-day Tuesday trading.

Oil's most-recent minor decline - - there have been several during the past five years - - was short-circuited Friday, this time by the falling dollar and geopolitical events. (Oil rose $2.88 to $134.81 per barrel in Friday afternoon trading.)

Investors (and oil users, for that matter) may be asking: Is there anything in oil's chart that would have provided a clue to this latest and other abrupt ends to the brief pull-backs? Technical analysts believe there is.

Although they represent only one segment of the financial analysis / market analysis spectrum, technical analysts argue that certain indicators provide clues regarding price movement. And one long-term trend indicator is the moving average.

A tough average to break is the 50-day moving average: strong companies, or commodities, consistently remain above the 50-day moving average; weak ones, the reverse.

An even tougher average to break? The 200-day moving average. Given the typical time horizons for many traders, the 200-day moving average, or 200-day MA, is considered the toughest average to break.

The significance for oil? This week, oil's 200-day moving average rose above $100, to $100.67.