Moves above and away from the 200 hour MA
The price of crude oil futures have search to the upside with the price moving above the $25 – make that $26 …err $27 a barrel level the 1st time since March 20.
Technically the price is also extended above its 200 hour moving average and is moving away from that level. The moving average currently comes in at $22.35. The last time the price moved above that moving average was back on February 24 when the moving average was at $52.
The next target comes in against the 50% retracement at $27.81. That is of the move down from the March 11 high. That level is also near swing highs from March 19 and March 20. Get above would open the door for further gains.
Taking a broader look at the daily crude oil chart below, the high in February was at $54.50. That is the start of the last leg lower.
On March 9, the price gapped lower from the March 6 close. That weekend gap lower took the price from a Friday low of $41.05. The corrective high from March 11 reached $36.35. The 50% of the trend leg down from the February high comes in at $36.89 just above the high retracement from March 11.
IF the oil war gets solved, traders will be eyeing that gap to fill.
Very volatile trading as market reacts to the comments from Pres. Trump