Crude oil futures closed at $64.80, rising by $1.14 or 1.79%. The highest price today was $65.10, while the lowest was $63.53. On the daily chart, prices have moved above the 100-day moving average at $64.29, which gives buyers a short-term edge. The market is testing a price range between $63.61 and $65.27. If the price stays above this range, attention will shift to the 200-day moving average at $67.46, with some resistance around $67.00.

Volatile Trading Patterns

The market has seen fluctuating trading near both the 100-day and 200-day moving averages over the past few years. Both highs and lows are gradually decreasing, showing a downward trend overall, despite occasional rises. Right now, if prices stay above the 100-day average, the outlook leans towards buyers. This keeps the possibility of reaching upward targets alive. With crude oil futures rising above the 100-day moving average, we have a short-term bullish signal. This suggests buyers are currently strong, with the focus on the resistance level at $65.27. If prices break above this point, it could lead to a significant move toward the $67 mark. This upward movement is likely supported by the latest Energy Information Administration (EIA) report, which revealed a surprising draw of 2.8 million barrels from U.S. crude inventories last week. This report for the week ending August 22, 2025, went against predictions of a small increase, indicating steady demand. This solid foundation boosts the case for the ongoing technical uptrend.

Trading Strategies and Market Concerns

For those interested in trading this upward momentum, buying call options with a strike price of $67 may be a smart move in the coming weeks. This strategy allows traders to benefit from potential price increases toward the 200-day moving average at $67.46. Options trading can also help to manage and limit losses in case the price reverses unexpectedly. However, we should stay cautious, as the longer-term trend shows a pattern of lower highs and lower lows. In the second quarter of 2025, similar rallies faltered as they approached the 200-day moving average. The market has been unstable, and this might just be another fleeting rise within a broader downtrend. Adding to our concerns, the peak summer driving season in the Northern Hemisphere is ending, usually leading to reduced gasoline consumption. Meanwhile, weak industrial production figures from the Eurozone have raised fears of a global economic slowdown, which could weaken future oil demand. This economic challenge could easily disrupt the current rally. Create your live VT Markets account and start trading now.

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