The price of WTI crude futures are settling at $89.63. That’s down $0.03 or -0.03%.
Technically looking at the hourly chart above, the price settlement is just above its 200-hour moving average at $89.57, and below its 100-hour moving average at $90.30. That puts the price in a neutral area. Buyers and sellers are battling it out between the moving average levels. It would take a move outside of the moving averages to tilt the bias more in favor of the buyers or sellers in the short term.
Of note, however, is that the low price today stalled against the high of a swing area between $88.08 and $88.39. The inability to move below that level (see yellow area and read number circles), gives the buyers more of a tilt advantage. The sellers had their shot after the strong rally. However, they could only get down to the previous swing area resistance/support (at the yellow area).
Nevertheless, if the 200-hour moving average can be broken at $89.57, there could be further downside momentum with the 38.2% retracement of the move up from the April 23 low at $86.77. If the price cannot get below the 38.2% retracement, the sellers are not winning in the longer term. That level will be a key level if the price starts to move back to the downside.
This article was written by Greg Michalowski at www.forexlive.com. Source