The price of crude oil has moved to new lows and in the process fell below its 100-hour moving average at $78.86 on its way to a low of $78.56.
At session lows, the price tested the low of a swing area between $78.52 and $79.29. Support buyers came in against the level and have pushed the price back up. The current price trades at $78.68 between the 100-hour moving average and the low of the swing area (see the low of the yellow area with the red number circles).
What now?
On the topside, the 100-hour moving average $78.86 followed by the high of the swing area $79.29 is now resistance.
Conversely, a break of the $78.52 low swing area, would have traders looking toward the 38.2% retracement of the move-up from the February low. The level comes at $78.15. That level is also home to the 200-hour moving average currently (green line in the chart above).
Sellers are making a play after the run higher failed. Can they push below the next targets now?
