SPR’s press release sets in motion the “buy the fact”
The United States announced the exit of the 50 million barrel SPR at the start of the New York session, and the price immediately hit a low of $ 75.32. However, the sale could not be sustained. and the price spiked higher over the next three hours of trading, pushing the price higher to test the 38.2% retracement of the downward movement from the November 9 high at $ 78.64 . The high price reached $ 78.72, just eight cents above the retracement level.
The last three hours or so of trading have moved up and down. On the downside, the low remained above the 100-hour moving average currently at $ 77.20 (the low could only reach $ 77.62). The high price stalled just off the 38.2% retracement level at $ 78.64.
So, overall, the ability of buyers to push back above the 100-hour moving average for the first time since November 16 is positive in the near term.
However, the recent overall trend from the high of $ 84.95 on November 9 has been more downward. The 38.2% retracement and 200-hour moving average (green line in the chart above) remain hurdles to overcome if buyers want to gain more control. In the absence of this and the above oil spurt can be ended.