Well, perhaps the spotlight and attention is not something oil bulls are liking at the moment especially after the hot start to the new week yesterday. WTI crude briefly hit above $92 to its highest levels since November last year before a quick retreat and now another over 1% fall back below $90 on the day:
WTI crude oil daily chart
It is a temporary setback after all the hopes and bullish fundamental talks and considering the lack of other major headlines, I’d say this reeks of profit-taking mostly. I mean oil has been on a rather unrelenting push higher since the latter of stages of last month, up from $80 all the way to above $90 last week.
For now, the near-term chart shows that buyers still have some room to fall back on at least. The break below $90 today sees a drop below the 100-hour moving average at $90.45 but not yet below the 200-hour moving average at $89.10. The latter is the key near-term level to watch for a change in bias. Fall below and the near-term outlook switches to being more bearish but hold above and buyers are still in it with a shout.