Despite a large build in crude oil inventories this week of 5.946 million (expectations were for a build of 0.483 million), the price of WTI crude oil settled up another $0.92 or 1.23% at $75.75. For the week, the price is up 2.57%. A sharply lower dollar is helping to contribute to the rise as is lower interest rates. The US 2-year yield is down -14 basis points. The 10-year yield is down -11.5 basis points.
The high price today reached $76.15. The low price was at $74.67.
Technically, looking at the daily chart above, the price sits between its 100-day moving average (blue line in the chart above) at $73.71, and its 200-day moving average (green line in the chart above) at $77.34. The price has not closed above its 200-day moving average since August 29, 2022 (when the 200-day moving average was much higher at $95.32). Earlier this week, the price moved and closed above its 100-day moving average for the 1st time since April 28.
Overall, the price of crude oil has been trading between $63.88 and $84 since November 17, 2022 (see red box). It’s not out of the question technically for the price to extend to the upper extreme (at $84) on a break of the 200-day moving average. There is room to room.
Conversely, if the price moves back below the 100-day moving average (at $73.71), the sellers are still holding most of the control and a rotation back toward $66.80 could be a target.
This article was written by Greg Michalowski at www.forexlive.com. Source