Crude oil backs off after run above mid November highs fails
The price of WTI crude oil futures are settling at $81.22. That is up $0.67 or 0.83%. The high price extended all the way up to $83.32. The low price early in the show the session was at $79.95.
Looking at the hourly chart, the price moved above the swing highs from mid and late November between $82.35 and the $82.66, however the high price stalled ahead of the 50% midpoint of the move down from November high. That level came in at $83.66. The $80 level will be a natural target support level on further selling pressure.
Move below that level and traders will start to refocus on the 200 hour moving average currently at $78.85 (greenline in the chart above). The price moved above that moving average with momentum on Wednesday. Moving back below it would not be good for the buyers looking for further upside momentum. The 100 hour moving average is below that level at $78.45, with a break tilting the bias fully in favor of the sellers.
On the topside traders would have to get back above the $82.66 and make run toward the 50% retracement