Low reached $50.06 but can’t go any further. Good level to buy against now.
Crude oil moved to a new month low (and low since October 2017) at $50.06. That was close to the natural support level at $50. However, selling dried up and the price has moved back higher. The price is now at $50.62. That is still down near -$1 on the day or -1.92%.
Looking at the hourly chart below, the price of crude oil tested the 100 hour MA at the highs for the day (see blue line in the chart below). However, like the $50 level below, the price could not move above the 100 hour MA. That kept the sellers more in control.
When the market trends like it has in crude oil, the bearish trend ends when buyers lean against a key level and stall the fall. That is step one. You can call the $50 level a key level. Stay above $50 is key for dip buyers.
The 2nd and 3rd step is to move above topside targets.
For crude oil, the 100 hour MA and 200 hour MAs are the 2nd and 3rd steps. That has not been successfully done – at least not yet.
So the battle is on with $50 as support. Buyers have a reason to buy with limited risk (stops below).
On the topside, the 100 hour MA at $52.04 and 200 hour MA at $54.00 (both are moving lower) are resistance/targets.
Until those MAs are broken, the sellers still hold the strongest hand.