MA and 38.2% slowing the rise
Yesterday, crude oil moved sharply higher on the back of news that Saudi Arabia will keep production in July near June levels and they expected to oil exports to drop in August (so unlikely to raise production). The price moved to the 38.2% and stalled.
Today, the price moved higher but had some trouble near the 200 hour MA (green line in the chart above). That MA – currently at $70.23 – and the 38.2% at $70.18 – need to be broken (and stay broken) for the bulls now. The current price is up about $0.40 at $69.85. The high reached $70.45. the low reached $69.37.
Looking at the daily chart, the price at the lows this week stalled at the 100 day MA (blue line in the chart below). That was a good hold. The price moved higher.
Last Friday, the price closed at around $71.01. So although off the lows this week, the contract remains lower on the week.
For now, if the price is to go higher, that 200 hour MA needs to be busted….Until then, the buyers from the 100 day MA are happy, but they are just trading the correction, and they are pushing against resistance.