The price of WTI crude oil recovered to the upside today. The price of the futures settled at $75.75, up $1.60 or 2.16%.
Technicals are playing a role in the price action.
Recall from last week, the price action was pushing against the 200-day moving average (green line currently at $77.27). After holding that moving average level on Friday and rotating lower, the selling continued yesterday.
The price low yesterday 100-day reach down to test its lower 100-day moving average (blue line in the chart above). That moving average level currently comes in at $73.68. The low price yesterday reached $73.84 yesterday
In trading today, the low reached $73.82, and once again the price bounced higher.
So whereas the 200-day moving average held resistance last week, the 100-day moving average held support today. The buyers and sellers are battling it out between the 2 moving averages.
Eventually, there will be a break above the 200-day moving average or below the 100-day moving average. Traders will look for momentum on the next break. Until then, let the games begin and the fight continue.
This article was written by Greg Michalowski at www.forexlive.com. Source