Up 3.68% on the day
The price of crude oil is now up $2 at $57.24. That is up 3.68% on the day.
Technically, after 11 days when the price trade above and below its 200 day moving average (green line), that string was broken yesterday and the price extended below the 100 day moving average (blue line) helped by the private inventory data which showed a much larger than expected build of 5.94M barrels (estimate 1.5M).
Today, however, the DOE data showed a less than expected build of 1.379M. and the cover to the upside was on.
The price is currently just below its 200 day moving average at the $57.36 level. The high price has so far stalled at $57.25. A move above that moving average should be more bullish, with the high price since September at $58.08 as the target. Of course, there were 11 days when the price trade above and below the 200 day moving average. As a result, traders will take a break with caution.
For now, be on the lookout for sellers against the key moving average level with stops on a break above....