The price of crude oil is now trading in negative territory and $69.08. That is down from a high of $70.32.
Looking at the hourly chart, the price action this week did move above its 200-hour moving average (currently at $68.93) on its way to the high today.
That move higher today also exceeded above the $70 level and the 38.2% retracement of the move down from the August 24 high at $69.94, but momentum could not be sustained. In the last few hours of trading, the price action has seen a steady decline.
The price is back down retesting the broken 200-hour moving average at $68.93.
A move back below that 200 hour moving average would disappoint the buyers and could see further momentum with the price moving back toward its 100-hour moving average at $68.02. NOTE, yesterday a corrective move lower stalled against at 100 the hour-moving average and that hold helped to push the price higher. I would expect a retest today or next week, would find some stall near that target level.
This article was written by Greg Michalowski at www.forexlive.com. Source