Crude oil is showing a bullish technical heartbeat
Crude oil futures have been trending lower since topping out at a corrective high of $110.93 on April 30. That decline extended to a low of $67.04 last week, a drop of $43.89, or roughly 39.6%, from that peak.
Last week's low briefly pushed below the February 27 closing price of $67.28—the day before the Iran conflict began—but sellers were unable to sustain the downside break. That failure gave buyers an opportunity to step back into the market.
Yesterday, crude tested on the top side its falling 100-hour moving average (currently at $68.57, blue line on the chart). Today, the price has extended higher, moving above both the 100-hour and 200-hour moving averages (currently at $69.38). While reclaiming declining moving averages is an easier task after such a sharp selloff (the moving average falls but lags the price action), the move above still represents an important shift in the short-term technical bias and a win for the buyers.
The key now is whether buyers can hold above those moving averages? If they do, the current recovery has room to extend. If the price slips back below them, however, it would signal that the breakout has failed, shifting the bias back in favor of the sellers. Those moving averages now represent a logical risk-defining level for bullish traders.
On the upside, the next targets come in at the June 30 high near $71.56, followed by the June 25 high at $72.50. Beyond those levels, the 200-day moving average, currently at $73.98 (overlayed green dashed line), becomes the key technical hurdle. A move back above that longer-term moving average would represent a much more meaningful improvement in the technical outlook and strengthen the buyers' case for a broader recovery. It would likely also signal a trading the peace process between Iran and the US/Israel.
This article was written by Greg Michalowski at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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