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.