Can the price stay above the 100 hour MA
The price of crude oil futures are trading trading sharply higher today. The current price is up $1.92 with 3.87% $51.53. The high price did extend to $51.88.
The move higher has taken the price back above its 100 hour moving average. That moving average currently comes in at $51.29 (see blue line in the chart below). On both Wednesday and Friday of last week, the price peaked above the 100 hour MA line but could not sustain momentum. Traders who are jumping on the break above today, will be willing that 100 hour moving average for bias/risk clues. Stay above and all is ok for more upside probing. Move below and the buyers may turn back the sellers.
The move to the upside is despite the build of 3355K in the weekly crude oil inventories. Although that was above the 3000K estimate, it was not as high as the 4180K build from the private data released last night.
Also helping market today are hopes that OPEC will cut production by 500,000 barrels sooner rather than later, and less fear of the coronavirus. The crude oil was ignoring the better feeling earlier in the week but getting back above the $50 level today seems to have triggered more short covering (and dip buying).
