Crude oil trades at the highest level in nearly 2 months
Highest level since September 24The price of crude oil futures has moved up to a new session high at $58.28 and in the process is trading at the highest level since September 24 nearly 2 months ago.
The move today took the price above its November high at $58.09. Recall that the price of crude oil traded above and below its 200 day moving average at $57.39 for 11 consecutive days.
On Tuesday, the price tumbled lower falling below its 100 day moving average (and closing below that level). The move lower was helped by a much higher than expected API oil inventory data.
However yesterday, the inventory data from the DOE showed not nearly as strong a build, and the squeeze higher was on.
The price action today tried to stay below the 200 day moving average earlier in the session, but that level gave way, leading to increase momentum to the upside. Bullish.
Should momentum continue (stay above the 200 day MA), the 61.8% retracement of the move down from the September high comes in at $58.65. Get above that level and there is more room for further upside with the natural resistance level at $60 looming as a target to the upside.