The price of WTI crude oil is trading down near $72. He is currently at $72.15 down $-3.51 or -4.63% on the day.
The move to the downside has been accompanied by a deteriorating technical bias. Looking at the daily chart above, the high price for the month of April stalled just ahead of its falling 200 day moving average (green line in the chart above). Then last week, the price fell below its 100 day moving average (blue line currently at $76.66). The price tested that moving average on Friday and again yesterday, but found willing sellers, keeping the bearish bias.
Today, the fall has taken the price down toward a swing level near $72.25. The price is trading above and below that level over the last hour of trading, but sellers remain in control.
Drilling to the hourly chart below, the price move below its 100 and 200 hour moving averages back on April 17, and although the price has moved above it 100 hour moving average on a number of different occasions - including earlier today - the high prices have all stayed below the higher 200 hour moving average. That kept the sellers more in control (green line in the chart below). It will take a move above the 100 hour moving average currently at $75.26 and moving lower, to give the buyers some added confidence and more control.
Last week, the low prices stalled near the 50% of the move up from the March 20 low near $73.94. Today that midpoint level was broken and selling intensified. That midpoint level is now the closest risk for sellers. Move above, and there could be some additional upside probing toward the 100 hour moving average.
On the downside, the 61.8% retracement level comes in at $71.68. That is the next downside target to get to and through to increase the bearish bias.
