Crude oil stalls in the fall near the low from yesterday

Crude oil trading has the seen volatile up-and-down price action. The current price is trading at $78.60 down about $0.30 or -0.37%. Looking at the hourly chart, the low price today reached $77.59 and at the low, tested the low price from yesterday (which reached $77.62). Buyers were waiting near the lows, and have pushed the price back to the upside. That rise has taken the price back toward the $79 level.

Recall that the price traded down to the $79 level last week and found support on each test (see red numbered circles). Yesterday the price traded above and below that level, and so did some of the price action today. However, off the low today, the high price has stalled near that level. Key barometer in the short term for crude oil traders.

Are sellers leaning?

Watch the $79 level as a short-term barometer today. Move above and the falling 100-hour moving average at $79.76 would be targeted followed by the 38.2% retracement of the move down from the August high and the falling 200-hour moving average (green line in the chart above). Both of those technical target levels are at $80.40.

Stay below the $79 level and the low prices from the last 2 trading days become the key technical target to get to and through to increase the bearish bias.

This article was written by Greg Michalowski at Source