Crude oil snaps back higher
The price of crude oil has continued its run to the upside and is now up close to $2 or 2.85%. The low for the day reached $69.28. The high has now reached $72.90. THe current price is trading at $72.40.
As Adam posted earlier, there was a bomb attack in Iran along with a joint statement from OPEC+ vowing a commitment to unity which helped to shift the bias back higher. Also of note is Libya announced a partial shutdown of its Sharara oilfield on the back of protests. That momentum has continued to run higher.
Technically, the rise took the price back above the falling 100-hour MA at $72.42 (the price is trading above and below that level now). The 200-hour MA is above at $73.38 and represents the next key upside target.
Recall from yesterday, those two MAs were closer together, and on the rally to highs, sellers leaned against those levels which ultimately led to a sharp fall (see chart above). Those MAs were up near $73.40 yesterday. Both are lower today with the 100 hour MA moving down at a faster pace.
Going forward it would take a move above both MAs to kickstart more gains and increase the bullish bias. .
For now, however, the sellers are slowing the rally near/between the MA levels. On the downside, watch the 50% midpoint of the move up from the December 13 loa at $71.94 for close support. A move below that, and the buyers may start to lose more hope for further gains. Conversely, stay above, and the buyers are still in the game.