200 day MA tested and the price bounces on the first test
The price of crude oil moved to a session low of $57.97. That took the price within $0.11 of the key 200 day moving average at $57.86. Below that level is the 100 day moving average at $57.07.
Buyers came in and leaned against the upper moving average support level on its 1st test since toward the end of December, and the price has bounced. We currently trade at $58.35 which is still down $0.69 on the day, but off those low levels.
A move back above the 50% midpoint of the move cents October at $59.63 would be a tilt more in the bullish direction.
Breaking below the 200 day moving average and then the 100 day moving average at $57.07, would weaken the technical picture for crude oil.
Last week, the price spike higher on the bombing by Iran. However, sellers were encouraged that geopolitical tensions would not escalate, and a surprise build in inventory last week, helped to push the price sharply back to the downside.
