The price of WTI crude oil recovered to the upside today. The price of the futures settled at $75.75, up $1.60 or 2.16%.
Technicals are playing a role in the price action.
Crude oil trade between the 100 and 200 day moving averages
Recall from last week, the price action was pushing against the 200-day moving average (green line currently at $77.27). After holding that moving average level on Friday and rotating lower, the selling continued yesterday.
The price low yesterday 100-day reach down to test its lower 100-day moving average (blue line in the chart above). That moving average level currently comes in at $73.68. The low price yesterday reached $73.84 yesterday
In trading today, the low reached $73.82, and once again the price bounced higher.
So whereas the 200-day moving average held resistance last week, the 100-day moving average held support today. The buyers and sellers are battling it out between the 2 moving averages.
Eventually, there will be a break above the 200-day moving average or below the 100-day moving average. Traders will look for momentum on the next break. Until then, let the games begin and the fight continue.