Oil failed to once and then twice to get above the 38.2% and then the 200 hour MA as well. The subsequent selling has taken the price back below the 100 hour MA and now the price is testing the low from yesterday at the 54.18 level. The price simply could not remain supported yesterday, so don't mess with it (see post from yesterday: Forex technical trading: Oil rebounds, but the real question is “Can it stay supported?” ) The pair is finding support near the lows again, but the dynamics outlined in yesterday's post remain the same. That is, there can be rallies but the buyers have to prove they can take control AND keep control. Failure to do so and the sellers remain in control. Looking at the chart, if the buyers have a chance they need to get above the 100 hour MA now….at 56.30 currently.
Oil on hourly chart.
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