The price of crude oil rose today and broke above the double top on the hourly chart as well as the 50% midpoint of the move down from the August 13 high. These levels come in at $72.36 and $72.67, respectively. A break to the upside took the price towards the $74 level with today’s high reaching $73.92.
Yesterday, the price moved higher and in the process, tested the high price since September 24th. Holding against this level gave sellers the green light to move lower, and brought the price back down, but this decline was stopped near the 200 hour moving average (green line) currently at $69.82.
Yesterday the price bounced off this level and saw increasing momentum in trading here today – surpassing the above targets in the process.
Close support and risk will now be in focus at the previous resistance between $72.36 and $72.67. Stay above that, and traders will target $74.43 where the 61.8% level and other swing levels are located (see blue numbered circles).