Crude oil confined between the narrowing MAs for the 2nd day. Looking for a break
The price of crude oil is trading in a relatively narrow range today. The high reached $54.04 while the low extended to $53.21. We currently trading at $53.45 up $.19 on the day.
Technically, the contract moved above it's 100 hour moving average (blue line on the chart above) on Thursday last week. On Friday, there was a quick peek below that 100 hour moving average (see blue line in the chart above), but apart from that, the price lows yesterday and again today, bottomed just ahead of the MA at $53.10. If the price is to go lower, that MA will need to be broken (and stay broken).
On the top side, the 200 hour moving average (green line in the chart above) has been a ceiling for the rallies both yesterday and again today. The 200 hour moving average currently comes in at $53.94 (and moving lower).
With the moving averages converging and one providing support and one providing resistance, at some point traders will make up their minds as to which way to break. Look for that break with momentum to give the next bias clues.
For now the market is simply waiting for the next shove as buyers and sellers battle it out.