WTI Crude oil prices are trading 0.63% higher today at $54.41 per barrel as oil prices search for equilibrium after the drone attacks against Saudi Arabia oil facilities on September 14. The crude oil prices rallied from the from August 7th low at $50.74 up to $63.30 amid the attacks. However, as the oil supply from Saudi Arabia has been restored step by step, the crude oil price has traded back to the levels seen before the attacks.
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On the technical side, the bearish momentum is intact despite today’s rebound, as the crude oil price trades below all the major daily moving averages. On the upside, crude oil’s next resistance level stands at the daily high at 54.84, while more offers could emerge at the 200-day moving average at $56.53. I think short positions in crude oil look safe as long as the price hovers below the 50-day moving average of $55.97. On the flipside, immediate support stands at the daily low of $54.17, followed by yesterday’s low at $53.96. If the price closes convincingly below yesterday’s low, it will pave the way for a move down to the September 3rd low at $52.80. Overall, the bears are in control, and any move higher will probably be considered as a selling opportunity.Download our latest quarterly market outlook for our longer-term trade ideas.
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