Crude oil futures are moving higher today, currently trading at $85.41 — up around $2 on the session.
The high extended to $86.79, the best level since August 21. At session highs, the price was testing the key 100-day moving average at $86.73.
Buyers briefly pushed price above that MA, but momentum faded fast and price rotated back down. I like to say the buyers had their shot, and they missed.
What next?
With sellers winning out near the highs and the 100-day MA, the ball is now in their court.
They need to show they can take control/more control by breaking through downside targets.
The first is the 200-hour moving average at $84.17.
A break below that puts the 100-hour MA at $82.82 in play and as the next target..
Below that, traders will start eyeing the upward-sloping trendline near $80, followed by the 200-day moving average at $78.09.
On the flip side, if price can’t push below the 200-hour MA with any real momentum, buyers are still in the game.
But they’ll need to reclaim the 100-day MA and hold above it — do that, and it opens the door to further upside.
The important dynamic 4 today is that the buyers have their shot, and they missed. That gives the sellers the best hand with work to do.
This article was written by Greg Michalowski at investinglive.com.