Crude oil extended higher in trading today reaching the highest level going back to October 11. However the move to the upside did run into overhead resistance. The 200 day moving average (green line in the chart above) comes in at $75.25. The high price today reached $75.26. Sellers leaned against the moving average and have since pushed the price down.
The current prices trading at $73.66. Yesterday's settlement price came in at $74.25.
The inability to move above the 200 day moving average has given the sellers a reason to sell. Buyers also lost confidence on the inability to get above the moving average level.
On the hourly chart, the price has now dropped below a rising trendline near $73.92 and the 100-hour moving average at $73.76. These levels serve as key risk-defining thresholds for sellers aiming to sustain downside momentum. Notably, this marks the first time the price has traded below the 100-hour moving average since December 27.
The next downside target is $73.08, followed by the 38.2% retracement level of the December rally at $72.64. Breaking below these levels would further reinforce the bearish bias. If that occurs, the rising 200-hour moving average at $72.25 (indicated by the green line on the chart) would become the next key target.
