The failed push below the 200 day moving average was the first since November 2020, but did not last long.
The price of WTI crude oil futures fell sharply on Friday and in the process fell below its 200 day moving average for the first time since November 2020. The moving average day comes in at $69.99 and although the price traded below that level earlier in the session, it has since rebounded back above on its way to a high for the day at $72.90.
The price has come off of that high level but remains above its 200 day moving average. Having said that, the price still remains below its higher 100 day moving average at $74.26. That gives the pair a neutral stance.
Of course, the markets are also on high alert.
OPEC meets on Thursday. Will they react to the threat from the Omicron virus? Will they lean toward suppressing the production increases that have incurred at a 400,000 BPD? Adam posted about the inability for OPEC to meet their production quotas regardless of any decisions on Omicron?
All that is in play.
Technically, the 100 and 200 day MAs will help to tell the story being told. Get above the 100 day MA would be more bullish. Move below the 200 day moving average and bias is more bearish. Stay between and the buyers and sellers fight it out.
