Up $1.01 or 2.11%
The price of crude oil is ending the day up $1.01 ore 2.11% at $48.55. The high extended to $49.66. The low reached $47.75.
Technically, the price moved above the 200 day MA at $49.14 on the way to high. That break failed and the price is trading back below the MA level. The 50% of the move down from the April high comes in at $48.76. A move back below that level, coupled with the 200 day MA failure (and perhaps the stall ahead of the key $50 level), will likely lead to a further rotation lower.
The rally last week was driven by inventory data (higher draw down of inventory) and chatter about production cuts being extended. Saudi Arabia and Russia today said they favored a 9-month extension of those production cuts. That news was good for the surge to the high, but the momentum on the news could not be sustained. Perhaps all the bullish news is now out.
Drilling to the hourly chart, a move below trend line support at $48.28 would another bearish signal for traders.
