The price of crude oil is rebounding off session lows near $89.85 after finding support above yesterday’s low around $88.70.
That defense of the prior day’s low helped stabilize the market and sparked a recovery move as less optimistic headlines surrounding Iran negotiations began to filter back into the market narrative
Yesterday’s rebound from the swing low extended to a high of $97.34, and although prices remain lower on the day, buyers are attempting to regain some short-term control. From a technical perspective, crude is now approaching an important resistance target — the 50% midpoint of the move down from the April 17 high — which comes in at $94.95 (call it $95.00). That level is a key near-term barometer for both buyers and sellers.
If buyers can push and hold above the $95 area, it would strengthen the short-term bullish bias and shift trader focus back toward yesterday’s corrective high at $97.34. A break above that level would then open the door for a move toward the psychologically important $100 mark, where the falling 100-hour moving average is also converging as an added resistance target. The rebound in oil prices is also weighing on equity markets.