WTI crude range stayed locked between $77.84 and $81.25 this week, as traders waited for a clear break from those technical levels.
Oil first found support on Monday near its rising 100-hour moving average at about $77.55. Buyers then pushed prices higher. As a result, crude broke above a downward trend line and climbed to $81.25 on Tuesday.
That rally stopped just short of the 50% retracement of the drop from the early June high at $82.01. However, the move marked a fast rebound in a short time. After reaching Tuesday’s peak, crude turned lower and fell back toward the underside of the broken trend line near $77.84.
WTI Crude Range Keeps Traders Focused
Buyers stepped in again near $77.84 and sent prices back up. Since Tuesday, the market has kept bouncing between support near $77.84 and resistance at $81.25. Therefore, those two levels have set the week’s trading range.
Earlier on Friday, sellers pushed crude below the 38.2% retracement at $78.48. Prices also slipped under the rising 100-hour moving average. However, support at $77.84 held once more and sparked another rebound.
Later in the session, the rally returned to Tuesday’s high at $81.25. Sellers then defended that level and pushed prices back down. The market was later hovering around $81.00.
Break Above or Below Sets Next Move
Buyers are now trying to build enough momentum to clear the top of the range. A sustained move above $81.25 would point to the 50% retracement at $82.01. Moreover, a clean break above that level would strengthen the bullish technical view.
On the downside, a move back below the rising 100-hour moving average, now at $79.17, would shift focus to $77.84 again. If that support breaks, selling could speed up toward the rising 200-hour moving average near $75.78.
For now, the WTI crude range remains intact, and the first firm move outside $77.84 to $81.25 may set the next meaningful direction.
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Source: InvestingLive
