The price of crude oil is trading within a range. The low for the day came in at $80.71. The high is at $82.20. The current price is trading at $81.98
Looking at the daily chart, there is a swing area between $80.90 and $83.40 (see yellow area and red numbered circles). Within that is the 100-day moving average at $81.72 and the 38.2% retracement at $83.00.
Although the low price today moved below the low of the swing area, momentum could not be sustained..
The last 5 trading days have seen a high of $83.56 the low price came in at $80.15. That is outside of the aforementioned swing area, but buyers could not take advantage of the move higher and sellers could not take advantage of the move lower. Don’t give up, however. At some point, there will be a break and run. Right now however traders are watching the news, they may be paralyzed by the news, but they are not ready to move outside of the range.
This article was written by Greg Michalowski at www.forexlive.com. Source