The price of WTI crude oil is settling the day at $78.39. That's up $0.98 or 1.26%.
Recall from yesterday, the weekly oil inventory data showed a huge build of 14 million barrels, but that didn't stop buyers from squeezing the shorts to the upside.
Looking at the hourly chart, the price moved away from its 200 are moving average yesterday, and today extended above the 61.8% retracement of the move down from the January high. The high price in January came in on January 3 at $81.50. That level along with the $80 natural resistance are the next upside targets on further upside momentum.
On the downside traders, will be watching the $76.98 level for support. That level represents the midpoint of the 2023 trading range. The low price today reached $77.10 within $0.12 of that level before bouncing back higher.
Move back below and traders will be looking back toward the 200 hour moving average at $76.04.
The buyers are making a play (and have more short term control), but overall the price of crude oil remains in an up and down range between $73 on the downside and $81.50 on the topside.