The price of WTI crude oil futures are settling at $79.48. That is down -$0.70 or -0.87%.. The decline is the first decline after a consecutive days to the upside.
The high price for the day reached all the way up at $82.66. The low price extended to $79.32.
After closing above the $80 level yesterday for the first time since December 30 yesterday, the momentum higher faded today after the price tested its falling 100 day moving average (blue line in the chart below). That moving average comes in at $82.69. The high price was three cents short of that key target. Sellers leaned as risk could be defined and limited against the moving average.
Ultimately, it would take a move above the 100 day moving average to give the buyers more confidence to the upside. Above that and the high price from December at $83.34 would help to confirm the break. If the price is able to stay above both those levels, there is room for more upside momentum.
For now, the first test of the key moving average showed the sellers are not running away. However with the price moving up for eight consecutive days, a down day was in the cards. Selling against the 100 day moving average is a logical place for the buyers to take some profit.