crude oil plunge
Crude oil prices are crashing. The price is now down $3.40 or -4.68% and is trading at $69.27. The lowest price just reached $69.21.
Concerns about China’s growth have fundamentally started rolling the ball downwards. I also contributed technically.
Looking at the hourly chart, today’s high of $73.36 has broken above the 100 hour MA near $73.05. However, the momentum could not be sustained and the price has since broken below the 200 hour moving average (currently the green line at $72.55).
After breaking below last Thursday’s lows near $71, the momentum has picked up. This level was tested today and initially found a support buyer but was breached after a few hours.
The price low has just reached the next target support near $69.40 and has now breached it (see red number circle). Sellers continue to be firmly in control.
That said, the market is oversold (RSI is around 22 on the hourly chart). As a result, traders should be a little more cautious about upcoming breaks. “Catching a falling knife” is difficult, but traders should be wary of a possible breakout at $69.40 levels.
If the downtrend gains momentum, the next target should be near the May 4 lows of $67.48.
