OPEC report leads to a recovery but the rally stalls
The OPEC headline about keeping production cuts in place with Non OPEC participation, sent the price of Crude oil back toward unchanged levels. The rally higher took the price to a a intraday high of $48.74. That took the price toward unchanged levels and also just above the 200 day MA at $48.65. However, sellers came in and have pushed the price back lower.
The failure to extend meaningfully above the 200 day MA will increase that levels importance going forward. The sellers remain more in control.
The price action would be more bearish on a move below the 38.2% of the move up from the June 2016 low at the $47.60. The low today reached $47.84. The price did dip below that retracement level last week, but momentum could not be sustained.
Sellers remain in control below the 200 day MA. Get and stay below the $47.60 level. The 50% retracement comes in at $45.24 and is another key downside target.
