Crude oil rotate toward the 100 hour moving average
The price of WTI crude oil futures are extended to the upside and in the process breaking up back above its 100 hour moving at $76.43 (blue line in the chart above). Stay above would have traders looking toward the 200 hour moving average currently at $77.63.
In trading this week, the price moved below the gap from the OPEC+ meeting back on March 31 at $75.70. That helped to send the price toward the 50% midpoint of the move up from the March 20 low. That midpoint level comes in at $73.94.
- The low price from Wednesday reached $74.06 – 12 cents above the target.
- The low price from Thursday reached the $74.03 – 9 cent above the target
- The low price from earlier today reached $73.93 – a single penny below the target.
On each test, the buyers leaned. Today’s rebound has been the largest. Sellers had their shot – well three shots. They missed on each try.
Now with the price above the 100 hour moving average, can the buyers keep control and stay above that moving average? On a failure, traders will re-eye the $75.70 level from the gap as support. Move back below it, and I would expect more momentum to the downside once again.