The value of WTI crude oil is settling at $70.09. The low for the day reached $68.68. The excessive for the day prolonged as much as $70.66.
Technically, the worth low in the present day stalled proper close to its 200-hour transferring common. That transferring common is at present at $68.62. The next transfer to the upside additionally moved again above its 38.2% retracement of the transfer down from the August 26 excessive of $77.56. That retracement degree is available in at $69.94.
So holding the 200-hour transferring common gave the patrons go-ahead to push greater, and though the worth of crude oil traded above and beneath the 38.2% retracement, the settlement above it offers the patrons some hope that the patrons try to make a play.
On additional upside, merchants will look towards the excessive worth from September fifth at $70.78. Above that and the 50% midpoint of the identical transfer down from the August 26 excessive is available in at $71.40. That degree additionally occurs to correspond roughly with the excessive worth from September 4.
Basically, oil costs rose as the consequences of Hurricane Francine stored almost a fifth of crude oil manufacturing within the Gulf of Mexico offline. Additionally, as Adam identified in his earlier put up (learn it by CLICKING HERE), the positioning knowledge launched late on Friday exhibits extraordinarily unfavourable positioning in oil. When the open positions get out of line (on this case the shorts are excessive), it may result in a squeeze greater, and that appears to have contributed to the positive factors.