The price of crude oil pushed to its highest level since March 9, extending to an intraday high of $103.86. In doing so, the price moved above the 61.8% retracement of the sharp move down from the March 9 high to the March 10 low, which comes in at $103.16—tilting the bias more firmly in favor of buyers.
Looking back to last week, the price had already reclaimed the 50% midpoint of that same decline at $98.11, a level that helped shift momentum higher. Today’s corrective dip found support at $99.43, comfortably above that 50% level, reinforcing it as a solid risk-defining area for buyers.
For sellers to regain control, they would need to push the price back below $103.16 and hold it there, then extend the move lower through the $98.11 midpoint. Until that happens, the buyers remain in charge with momentum still pointing to the upside. In the video above I take a look at the technicals driving the price of oil and show the key levels to explain why.
