Crude oil price is rebounding from session lows near $89.85 after finding support above yesterday’s low of $88.70. This defense of the previous day’s low helped stabilize the market and sparked a recovery movement as less optimistic headlines surrounding negotiations with Iran began to filter back into the market narrative.
Yesterday’s rebound extended from the swing low to the $97.34 high, and although prices remain low on the day, buyers are trying to regain some control in the short term. From a technical perspective, crude oil is now approaching an important resistance target – the 50% midpoint of the downward move from the April 17 high – which comes in at $94.95 (let’s call it $95.00). This level is a key near-term gauge for both buyers and sellers.
If buyers can push and hold above the $95 area, it will reinforce the short-term bullish bias and shift trader focus back towards yesterday’s corrective high of $97.34. A break above this level would open the door for a move towards the psychologically important $100 level, where the bearish 100 hourly moving average is also converging as an additional resistance target.
The recovery in oil prices is also affecting stock markets. As the price of crude oil rose, stocks gave up part of their previous gains, with the Nasdaq now down about 20 points, or -0.08%.
