Crude oil futures are settling down $3.10 on the day at $88.20, after a wide trading range between a low of $85.95 and a high of $91.55.
Looking at the daily chart below, the day’s low dipped below the 50% midpoint retracement of the move up from the December 17 low at $87.34, but stopped short of the 100-day moving average target at $85.66, coming within $0.29 of that rising level. The last time price traded below the 100-day moving average was back on January 23, when crude was near $60.24.
Notably, the decline came despite heightened tensions overnight after an Apache helicopter was shot down, reportedly by an Iranian drone. In the past, that kind of headline might have sent crude sharply higher. Instead, the price remains well below yesterday’s close and traded to its lowest level since April 21.
Nevertheless, going forward it will take a move below the 100 day MA to tilt the bias more to the downside.
