Crude oil futures continue to get hit with the contract price near $73 after trading above $81 just yesterday.
The contract is currently trading below the $73 level at $72.94. That’s down close to $4 on the day.
Looking at the daily chart above, the low price in December (and for the year) reached $70.10. That was the lowest level going back to December 21, 2021.
The price is currently testing swing levels between $72.76 and $73.31 (see red numbered circles on the hourly chart below). A move below the $72.76 level would have traders looking toward the December lows as the next key target area.
Conversely, holding the swing area from the hourly chart, and we could see a bounce back higher as traders leaned against the interim support level.
Yesterday, the high price extended to $81.44 before starting it’s run back to the downside. The decline from the high is over eight dollars or -10% in less than a day.
Contribute to the declines is expectations that the harsh weather in the US took drivers off the road during the holiday season and is leaving large stockpiles in its wake.
Global slowdown in growth is also a concern.
Technically, the price has been able to stay below it’s 100 day moving average for all but two trading day (November 4 and November 7) since July 5, 2022 (see blue line in the chart above).
This article was written by Greg Michalowski at www.forexlive.com.
