In just two days, oil has pretty much erased its recent recovery as we see another $4 drop today to below $96 currently:
Large doses of volatility have not been foreign to oil since the Russia-Ukraine conflict but there has been a bit of a habit of heavy selling in the past few weeks. Today seems to be one of those stinging episodes for oil prices as we see a pattern of lower highs, lower lows start to develop more clearly.
The latest retreat comes after an attempted push higher, which threatened the daily trendline resistance since June (white line) but failure to breach the 8 to 11 July highs near $105 is seeing prices turn tail and run the other direction.
The drop today brings into focus key support near $95 again with the 200-day moving average (blue line) at $94.58 a major support level to watch. That alongside daily support around $93.56 helped buyers to salvage the technical picture last week and those levels will be ones to watch again as prices come under pressure.
