Crude oil futures closed at $66.98, down $1.47 or 2.15%. Last week, prices hovered around the 200-day moving average, closing above it only on Friday. Today, prices hit a high of $69.61, the highest since June 24. However, the trend reversed, and prices dropped below the 200-day moving average of $68.33, eventually reaching a low of $66.87. On the hourly chart, prices fell below the 100-hour moving average of $67.97 and the 200-hour moving average of $67.37. This signals a bearish trend. Breaking below these important moving averages shows a rise in selling pressure. This gives sellers an advantage, making it tough for buyers in the market. Recent sessions displayed a strong effort by the market to rise, but selling pressure pushed the momentum down. The initial spike to $69.61 suggested bullish intentions, but that excitement didn’t last. Once prices couldn’t stay above the 200-day moving average, sellers took this chance to steer the market. When prices failed to hold above the 100-hour and 200-hour moving averages, a steady decline followed. These levels often serve as pivot points for short-term traders. Falling below them can lead to capital outflows from speculative buyers while attracting new short sellers. We’ve now seen a break below several key moving averages across different timeframes. In similar past situations, there is often continued selling pressure until prices hit solid support or buyers show enough strength to turn things around. With sellers pushing the market below both the 200-day and hourly moving averages, we may see an increased response to ongoing weakness. If the $66.87 low breaches further without attempts at recovery, more retracement is likely, especially if recent trading volumes confirm this trend. Investors should closely monitor how prices react around the $67.00 level in the short term. Any attempt to reclaim and close above previous support levels, now turned resistance, is significant. For now, momentum favors retracement rather than recovery. We are watching for any changes in volume and momentum indicators that might indicate weakening selling pressure. Until we see such signs, staying alert to potential downside remains smart. Targeting lower levels can be based on previous consolidation zones, paying attention to how order flow behaves near these areas. As prices stay just below key hourly averages, it’s crucial to consider not just what the price does but also what it doesn’t do. A lack of quick attempts to regain lost levels suggests more than just caution—it indicates market control.

here to set up a live account on VT Markets now