The price of crude oil is rebounding off session lows near $89.85 after finding support above yesterday’s low around $88.70. That defense of the prior day’s low helped stabilize the market and sparked a recovery move as less optimistic headlines surrounding Iran negotiations began to filter back into the market narrative.
Yesterday’s rebound from the swing low extended to a high of $97.34, and although prices remain lower on the day, buyers are attempting to regain some short-term control. From a technical perspective, crude is now approaching an important resistance target — the 50% midpoint of the move down from the April 17 high — which comes in at $94.95 (call it $95.00). That level is a key near-term barometer for both buyers and sellers.
If buyers can push and hold above the $95 area, it would strengthen the short-term bullish bias and shift trader focus back toward yesterday’s corrective high at $97.34. A break above that level would then open the door for a move toward the psychologically important $100 mark, where the falling 100-hour moving average is also converging as an added resistance target.
The rebound in oil prices is also weighing on equity markets. As crude has moved higher, stocks have surrendered part of their earlier gains, with the NASDAQ index now lower by roughly 20 points, or -0.08%.
This article was written by Greg Michalowski at investinglive.com.
