The price of crude oil is trading to new session lows and in the process has moved back below its 100 and 200 hour moving averages.That tilts the bias in favor of the sellers.
Looking at the hourly chart, the high price reached on Monday extended up toward a downward sloping trendline connecting recent highs on that chart. The price was also just below the broken 38.2% retracement near the $60 level. The subsequent low yesterday fell to the 200 hour moving average (green line) where support buyers stepped in.
Today, the price has rotated lower on hopes for a peace deal between Russia and Ukraine. That has pushed price below the 100/200 hour MAs and $58.81 and $58.72. Stay below those moving averages tilts the technical bias to the downside.
Targets on the downside include $57.39 and $57.10. The low price from October extended down to $55.96. The low price for the year comes in at $55.15 reached in April.
Sellers are making a play and taking full control. Stay below the 100/200 hour MA keeps them in control today and going forward.
