TECHNICAL ANALYSIS

Crude Oil (April Contract) Dips Below 100 Hour MA But Finds Some Trendline Support


100 MA hours at $ 60.32. Trendline at $ 59.94

The price of the WTI crude oil futures contracts is $ 60.53. Since then, it has fallen back to the $ 60 level again. Today’s low hit $ 59.81 a few hours ago.

100 MA hours at $ 60.32. Trendline at $ 59.94

On the downside, the price is looking to retest a lower trendline of $ 59.94 currently (and rising). A move below this line will cause traders to look towards yesterday’s swing lows $ 59.57 and Tuesday’s low at $ 59.34. Maintaining support and breaking above the 100 hour moving average currently at $ 60.32 would tilt the bias in favor of buyers.

The price of crude oil futures rose early in the session after private API data showed a larger-than-expected pullback of -5.8 million barrels. Data from the Department of Energy arrived today with an even larger draw of -7.257 million barrels. However, the news was already integrated and the gains were limited. The price started to come back down.

Now with contract test support, and just above the $ 60 level, the market will test the will of buyers here. Will the support hold up? Or will the price probe further downward. The 200-hour moving average currently stands at $ 59.16. The 38.2% retracement of the upward movement from the February 1 low stands at $ 58.18. These are the next major downside support targets for the contract.

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