Crude oil settles at $83.27 after a mixed session that saw prices finish up $0.07, or 0.08%. During the day, crude touched a high of $84.35 and fell to a low of $82.40. However, the close left the market below $83.87, a level the source identified as the 50% retracement of the drop from the July high.
Earlier in the session, crude moved above $83.87. Buyers, however, failed to keep the price there. Meanwhile, the session high at $84.35 stayed below Tuesday’s high of $84.54, which added to the weaker tone late in the day.
Crude Oil Settles at $83.27 Below Key Level
The source said the move back under $83.87 gave sellers the near-term edge. In addition, the rebound from the day’s first low also stalled near that same mark before prices turned lower again. That left $83.87 as the main technical level to watch.
If selling picks up, a break under $82.40 could shift focus to $81.60. The source identified that mark as the 38.2% retracement. Furthermore, a move below $81.60 would bring the 100-hour moving average at $80.52 into view, followed by the 200-hour moving average at $79.64.
Buyers Fail Again Near $83.87
On the upside, buyers need to push crude back above $83.87 and hold it there. The source said buyers tried to clear that level yesterday and again today, but both efforts failed. Therefore, the market ended the session with sellers holding the short-term advantage.
For now, the source described $83.87 as the key barometer. A move back above it could reopen the path toward recent highs.
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Source: InvestingLive
