Saudi production news and Arctic freeze in Texas help to whip the contract around
The crude oil futures price for April delivery has seen its contract price initially move lower at the start of the trading day toward $59.57, then rip higher to a new cycle high $61.29, followed by a tumble back down to the lows and now back up to test the highs of the day once again.
The catalyst higher has been the deep-freeze and Texas which has shut down most of production. The catalyst for the downside move was report that Saudi Arabia was set to reverse recent unilateral production cut.
Technically, the most recent price declines all the price move toward the rising 100 hour moving average (blue line in the chart above) and find support buyers. The pair also remains above a rising trendline.
On further upside momentum on a move above the highs near $61.29, the contract will target the topside channel trend line that cuts across at $62.49 (and moving higher).
Overall, until the 100 hour moving average can be broken on the downside (and stay broken), the buyers remain in firm control
