Crude oil retraces and dips to low of swing area. Finds support buyers.

The price of crude oil has moved to new lows and in the process fell below its 100-hour moving average at $78.86 on its way to a low of $78.56.

At session lows, the price tested the low of a swing area between $78.52 and $79.29. Support buyers came in against the level and have pushed the price back up. The current price trades at $78.68 between the 100-hour moving average and the low of the swing area (see the low of the yellow area with the red number circles).

What now?

On the topside, the 100-hour moving average $78.86 followed by the high of the swing area $79.29 is now resistance.

Conversely, a break of the $78.52 low swing area, would have traders looking toward the 38.2% retracement of the move-up from the February low. The level comes at $78.15. That level is also home to the 200-hour moving average currently (green line in the chart above).

Sellers are making a play after the run higher failed. Can they push below the next targets now?

This article was written by Greg Michalowski at Source