Low reached $50.06 however cannot go any additional. Good degree to purchase in opposition to now.
Crude oil moved to a brand new month low (and low since October 2017) at $50.06. That was near the pure assist degree at $50. Nevertheless, promoting dried up and the value has moved again increased. The value is now at $50.62. That’s nonetheless down close to -$1 on the day or -1.92%.
Trying on the hourly chart beneath, the value of crude oil examined the 100 hour MA on the highs for the day (see blue line within the chart beneath). Nevertheless, just like the $50 degree beneath, the value couldn’t transfer above the 100 hour MA. That stored the sellers extra in management.
When the market developments prefer it has in crude oil, the bearish development ends when consumers lean in opposition to a key degree and stall the autumn. That’s the 1st step. You possibly can name the $50 degree a key degree. Keep above $50 is vital for dip consumers.
The 2nd and third step is to maneuver above topside targets.
For crude oil, the 100 hour MA and 200 hour MAs are the 2nd and third steps. That has not been efficiently completed – a minimum of not but.
So the battle is on with $50 as assist. Patrons have a purpose to purchase with restricted danger (stops beneath).
On the topside, the 100 hour MA at $52.04 and 200 hour MA at $54.00 (each are shifting decrease) are resistance/targets.
Till these MAs are damaged, the sellers nonetheless maintain the strongest hand.