Crude oil retraces gains and trades back toward 100 hour moving average support

<p>The price of crude oil last week, came down to test a key target at $79.00. For 3 straight days (W-F), the price of the crude oil set lows within $0.05 of that $79.00 target and stalled the fall. The price rebounded into the close on Friday and closed higher on the day.</p><p>Today, the momentum higher continued and the price moved up to test the 200-hour MA (green line on the chart below) at $81.82. Just above that level sits the 50% midpoint of the move down from the August 10 high. That level comes in at $81.92 (see chart below). The high price reached $81.75 – within $0.07 of the 200-hour MA level. </p><p>Subsequently, the price has rotated lower and in the process, has now retraced all the gains. The move lower has also retested the 100-hour MA at $80.47 (blue line on the chart below). The low price reached $80.44 just below that key MA level. </p><p>So support today has held near the lower 100-hour MA at $80.47. Resistance held near the 200-hour MA and 50% retracement. The battle lines have been drawn with the MAs doing their jobs so far. </p><p>Traders will look to trade the range and use the levels to monitor a break. Sellers are more recently making the play. Get below the 100 hour MA and the sellers can push harder. </p>

This article was written by Greg Michalowski at www.forexlive.com.