The price of Crude Oil continued to sell off, with the price dropping to a low of $92.23. This sent the pair down almost $2 on the day when current prices rebounded to $92.55.
Looking at the hourly chart, yesterday’s high price extended to a high of $95.04 before declining to the close. The high price in today’s trade reached $94.79 below the $95 level. This move extended above the 50% of the last move lower between the late July high and the August 5th low at $94.42, but the momentum could not be sustained. Once the price broke below the low of the day and $93.60, the momentum built up and led to the downside. A swing low from yesterday came in at $92.18. Today’s low at $92.23 tested this swing level.
If the downward momentum could continue, the 100 and 200 hourly moving averages converge at $91.32. This level would be a key barometer for buyers and sellers.