Crude oil futures back below $90, but buyers remain in control

Crude oil prices have risen by $1.33, marking a 1.5% increase, and are currently trading at $89.85. Today’s peak reached $90.26, the first time it surpassed $90 since November 8, before retracting slightly. A few key observations from the daily chart:

  • On September 1, the price surpassed a crucial range between $82.43 and $83.44 (highlighted by red numbered circles and a yellow area in the referenced chart).
  • Since then, the price has been on an upward trajectory.
  • Last week, the price fluctuated around the 38.2% retracement of the decline from June 2022, which is approximately $86.72. This is now considered a support level.
  • The past four trading days have consistently shown an upward trend, with each day recording a higher peak.

Looking ahead:

  • The next significant target on the daily chart is around the 50% retracement from the June 2022 high, aligning with the peaks of October and November 2022. This range is between $93.64 and $93.78.
  • While this target is still a bit distant, it appears to be the bulls’ aim.
  • A drop below the $86.72 (38.2% retracement) would challenge the current bullish momentum. A further decline below the $82.43 to $83.44 range would intensify this challenge.
  • As of now, the market sentiment leans towards the buyers.

This article was written by Greg Michalowski at Source