Crude oil comes off highest level since October 2018

Technical Analysis

High price reached $71.24

The price of crude oil futures extended to a cycle high of $71.24. That is the highest level since October 2018. The current price trades around $71.

The price of crude oil is up for the 3rd week in a row. The price closed around $69.40. This week, the price traded above the $70 level, but also saw moves above and below that key barometer during the week.  So there has been some apprehension/anxiety.    

That anxiety was shown yesterday,when the price fell sharply after reports that the US was easing sanctions on an Iran individuals. The US state department later said that the action was not reflective of overall easing of Iran sanctions but a normal review of past sanctions. As a result, the price moved back higher.

From a technical perspective, the fall yesterday stalled near the 200 hour MA (green line on the hourly chart above).  Not crashing below was a bullish clue. Today, the corrective low stalled at the 100 hour MA (blue line) before moving higher, also a bullish clue.  

Ultimately, it would take a move below the rising 100 hour MA at $69.80 and the 200 hour MA at $69.23 to hurt the bullish bias. Until then, the upside might have some anxious moments, but the buyers would remain in control.  

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