Rebound higher, falters...
The price of WTI Crude oil pushed up to a high of $50.11 today. Yesterday the low reached $48.59 before snapping back higher.
However, the move higher ran out of steam around the area of the broken 38.2% retracement of the move up from the November low (at $50.26). The high today reached $50.11. Sellers on the rally perhaps?
The subsequent fall has taken the price back down toward the key support area defined by the 50% of the move up (at $48.72) AND the 200 day MA (at $48.68). This is a key technical area for the pair going forward. Be aware.
The Baker Hughes data will be released at the top of the hour. Last week the total rig count reached 756, with 146 gas rigs and 609 oil rigs.
It is too early to react to the move back below the $50 level in oil. However, if the price starts to trade in a $45 to $50 range (i.e we get a break and run below this key support), the steady rise we have been seeing in rigs, may start to slow.