Crude Oil Price Probes One-Week High as Sellers Step Back

Strategies Overview June 07, 2019 (0)

The latest, muted, push-back in the price of crude oil has seen black gold touch a fresh one-week high in thin trade.

Crude Oil Price Chart and Analysis:

  • Crude oil pulls-back but the move is running out of steam.
  • New drivers needed for the next move.

The latest, muted, push-back in the price of crude oil has seen black gold touch a fresh one-week high in thin trade. Crude is now at the bottom of a zone characterized by two sharp sell-off candles, the body of the recent move from the top of the reversal doji May 28 at $69.40/bbl. to the five-month low June 5 at $59.22/bbl. The top of this zone also cuts across the 200-day moving average and sits just above 50% Fibonacci retracement at $65.60/bbl. A push back above this zone is likely to need a strong impulse to drive the move.

If this zone is respected, and oil fails to close above $62.75/bbl. then bears may re-test 61.8% Fibonacci retracement at $60.63/bbl. before testing sub-$60/bbl. and the recent low. The recent up-tick has taken oil out of heavily oversold territory, but the current level still indicates weakness.

Crude Oil Daily Price Chart September 2018 – June 7, 2019

Crude

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