Looks to test its 50 day moving average
The price of the October crude oil futures contract is trading up $0.47 at $40.62. The high price reached $40.89 today while the low extended to $39.42. The Saudi energy minister said this morning that the OPEC+ Canada called for an extraordinary October meeting to take extra measures in the event the situation worsens. This is according to an OPEC+ source. OPEC+ is concerned over a 2nd Covid 19 wave, but also sees signs of economic recovery and initial indications of oil stock declines.
Technically,the price of crude oil has reached the highest level since September 4 when the price fell away from its 50 day moving average. The move to the upside is moving back to test that moving average currently at $41.28.The 200 day moving average is higher at $42.19. Recall that at the end of August enter into early September, the price of the contract traded above and below the 200 day moving average for 7 consecutive days but could not muster much of a break above that moving average level.
The fall lower in September took the price below its 100 day moving average currently at $38.34. Like the 200 day MA, the price trade above and below its 100 day moving average for 7 days. Yesterday the price moved way to the upside.
The October contract will go off the board today.
