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.