Crude oil prices are down sharply today with the front contract trading at $94.40. That is down 16.43%. The low for the day reached $91.05. The high was $109.19. The markets are reacting to the "cease-fire" deal, but the price is still remains well above the pre-war levels near $61.45.
Technically, the tumble to the downside has seen the price move back below its
- 100 hour moving average at $106.69,
- 200 hour moving average at $102.97,
- 38.2% retracement of the range since the February 26 low at $98.21, and briefly below the
- 50% midpoint of the same trading range at $91.65.
The low for the day extended to $91.05 before bouncing back to the upside. The North American session low is stayed above the 50% level with a low of $91.84.
With the price low is still $30 above the February 26 low just before the start of the war on February 28, there is room to roam to the downside if markets calm down.
But will the markets come down? A move below the 50% midpoint would likely need a positive continuation of the cease-fire going forward.
