Not looking that hot....
The OPEC result seemed to be baked in the cake and today we have seen a big move lower in the price of crude. It was not until a new swing high was made at a nice round number...$52.00.
The fall lower did take out some key technical levels.
Looking at the daily chart, the price moved and stayed above the 100 day MA yesterday at the $51.00 area (give or take a few cents). Today that break above, was reversed and buyers turned to sellers below the $51.00 level.
More recently on the daily, the price fell below the 200 day MA at $49.48. The current price is trading at $48.62. That MA is risk for shorts off the daily chart. On the downside, the March lows at $47.00 will be eyed. the market price fell below that level in May tried to stay below, but on the break back above the level, started to see more buying.
Drilling down to the hourly chart, the fall below the $51.00 level earlier in the day found some buyers near the 200 hour MA (green line) and trend line near the $50 level. However, when that level was broken, the selling intensified (see chart below).
The price si now below the 38.2% of the move up from the May 5th low at $48.85. The 50% of the move up comes in at $47.88. That is the closest target. Below that and those March lows at $47.00 will be eyed.
