Crude oil is moving up to test the 100-day moving average
The price of West Texas Intermediate crude settled at $73.86. That’s $2.06, or 2.87%, higher. The gain equals the gain from July 5th and is the largest gain since June 15th. The low price was $71.19. The highest price was at $73.91. The decline in the US dollar contributed to the rise.
Technically, the move to the upside has seen the price test the 100-day moving average, currently at $73.86. The last time the price tested the moving average was back on May 1st and April 28th. The price closed just above the moving average on April 28 but turned lower the next day.
Next week, traders will need to decide whether to break the key 100-day moving average and look towards the 200-day moving average upwards at $77.47 (the price last tested this moving average on April 13th when the sellers were are inclined), or use a moving average level to push the price back to the downside?
At the moment, the bullish momentum has reached its target. Buyers and sellers will now fight for control.
Essentially, Reuters reports that Russia still plans to cut oil exports in August due to domestic demand for gasoline, but it is unlikely to cut production. Also, Baker Hughes’ US rig count for the week ending July 7 decreased by 5 rigs at 540, while natural gas rigs saw the largest increase in six years, up 11 to 135, bringing the total rig count to 680.
For the trading week, the price of Crude Oil is up 4.53%. This is the largest increase since the week of April 3.