Crude Oil Tests May, March Lows
The price of crude oil fell into negative territory and thus tested the March and May lows near $76.80. (See the red number circles on the chart above).
A move below this level would open the door to further selling pressure as the bias technically becomes more negative.
Note that today’s high price remained ahead of its 100-day moving average at $78.82, giving sellers more control over the daily chart (see the blue line on the chart above).
Certainly, there is good support near the $76.80 level, but earlier this week the 200-day moving average held resistance (green line). Today, the 100-day moving average also held resistance, suggesting sellers are more aggressive. However, they have ground level to access and stay below.
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