After two successful bounces off the 100 hour MA, the level gives way and the sellers enter
The price of crude oil has scooted lower and trades to a new session low of $70.85. The move to the downside, was triggered on the break of the 100 hour MA at $71.58. The price had bounced off that MA on the last two tests. The third test was not so fortunate.
A trend line has also been broken at $71.18. Stay below those levels now would give sellers some control.
On the downside, the 200 hour MA and the 50% of the move up from the June 8 swing low both come in at $70.63. It will take a move below that level (and stay below) to give the sellers more control. Recall that last Thursday, the price moved briefly below the 200 hour MA on news of US dropping some sanctions against an Iranian individual, but that break was short lived. The breaking is an important downside target that would take some of the “bull” out of the crude market at least in the short term.