Crude oil futures are settling at $73.83. That is down $-1.73 or -2.29%.
The high price today reached $74.83. The low price was at $73.43. That comes after closing on Friday at $75.44.
Technically, recall on Friday and Thursday of last week, the price highs reached up toward its 100-day moving average currently at $75.93. Although the price did trade above the moving average, it was not by much and sellers pushed the price down on each day. With the price extending to the downside today, it is moving further away from that moving average level. Going forward, it would take a move – and close above – the 100 day moving average to give the buyers more control.
On the downside, the broken 38.2% retracement of the move down from the July high to the September low comes in at $72.62.
The declines today come despite increased tensions in the Middle East as Israel continues its Iran retaliation plan (disrupting Iranian oil exports). Concerns about China growth are also bearish for crude, as is a stronger dollar
This article was written by Greg Michalowski at www.forexlive.com.
