OPEC headlines give price a boost
The price of WTI crude oil futures have moved higher after headlines that Russia and Saudi Arabia production cuts are progressing. The number thrown out is up to a 20 million barrel cut which is higher than expectations (but would take cooperation from the US as well).
The price just scooted up to a new session high at of $28.36. The 50% retracement of the move down from the March 11 high (the post gap lower) comes in at $27.90. The 50% level was broken back on April 3 and again on April 6 only to rotate back below. The high corrective price from April 3 reached $29.13. That remains a topside target.
Price action is volatile. The current price trades right around the $27.90 but again, price action is volatile.
Needless to say, there is room to roam after the sharp fall. Looking at the daily chart below, the 38.2% retracement of the move down from the February swing high at $54.50 comes in at $32.73. That is just the minimum correction of the last trend leg down (which includes the gap from the $41 level down to the $36.35 swing corrective high) IF the buyers are to take some control back from the sellers. Failure to reach that level and the sellers - in the big picture - are still in full control.
