Encouraged by Iran nuclear talks
The price of crude oil has fallen sharply below its 100 and 200 hour moving averages. See Adam’s post here for the news triggering the fall.
The price of WTI crude oil futures fell down toward the $64 level (the low reached $64.11). In the process, the 100 /200 hour MAs were broken at $65.30 and $65.16 respectively. It would take a move back above those moving averages to increase the bullish bias now. Sellers are now more in control.
On the downside, the next target comes in at the 50% retracement of the move up from the April 22 low. That level comes in at $63.79. The low price from last week reach down to $63.04 and would be a another target on increased bearish momentum.
The high today reached around $67. That did take the price above the May highs at $66.60 and $66.73. The failure to extend higher, turned buyers and sellers. The breaking below the moving averages increased the sellers control.