WTI Futures Have Support at $93.80: Technical Analysis

West Texas Intermediate crude futures have supports around $93.80 a barrel, where the 200-day and 50-day moving average of the July contract converged, according to a technical analysis by Iitrader.com.

The contract has traded above $93.80 for the past four days and is below the resistance level of $98.22, the three-month intraday high, according to Bill Baruch, a senior market strategist at Iitrader.com in Chicago. The 50-day moving average closed at $93.79 yesterday and the 200-day average settled at $93.77.

“The 50-day and 200-day averages are down there roughly around $93.80 and that’s the bottom side of support,” said Baruch. “The market is in a trading range. There is no real catalyst right now to push it above or below.”

Oil for July delivery gained 81 cents, or 0.8 percent, to settle at a three-week high of $96.69 yesterday on the New York Mercantile Exchange. Since July became the front-month contract on May 22, the price has ranged from $91.26 to $96.92, yesterday’s intraday high.

A break above the resistance level might send WTI to $100, Baruch said. Prices may move toward $90 if they fall below the support level.

To contact the reporter on this story: Moming Zhou in New York at mzhou29@bloomberg.net

To contact the editor responsible for this story: Bill Banker at bbanker@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.