The 200 day moving average comes in at $57.33
The trend of the last 10 trading days has been that the price of crude oil has traded above and below its 200 day moving average. The prices just moved above the 200 day moving average at $57.33 on its way to a new session high $57.46. The price of crude oil is being supported by hopes for US China and with it global growth.
Having said that, the other thing consistent over the last 10 days is that the price momentum above the 200 day moving average has been limited. The high price has only been able to extend up to $57.88.
Over the same 10 trading days, the price low has been able to stay above its 100 day moving average (blue line in the chart above) at $55.98 49 of the 10 days. Last week there was a single day when the price dipped below the level but quickly rebounded.
So with the price above the 200 day moving average, you have to give the bias in control to the buyers with the $57.88 level as the next target. Traders however will be cognizant of a potential sale and move back into the range between the 2 daily moving averages.
