Crude Oil Price Remains in Uptrend Above $68.00 Vs US Dollar
- – Crude oil price started a solid rise from the $67.00 swing low against the US Dollar and moved higher.
- – There is a major bullish trend line formed with support at $68.20 on the hourly chart.
- – Recently in the US, Baker Hughes reported Rig Counts (August 24, 2018) report was released.
- – According to the report, the Baker Hughes Oil-rig count declined from the last reading of 869 to 860.
Baker Hughes Oil-Rig Count
Recently in the US, Baker Hughes reported Rig Counts (August 24, 2018) report was released. The market was positioned for no major change in the Baker Hughes Oil-rig count from the last reading of 869.
However, the actual count was a bit lower, as the Baker Hughes Oil-rig count declined from 869 to 860. Moreover, the total active U.S. rig count (comprising oil and natural-gas rigs) decreased from 1,057 to 1,044.
There was a minor bearish reaction in oil price from the $69.20 swing high, but the price remains supported above $68.00.
Oil Price Technical Analysis
There was a bottom formed near the $64.00 level in oil price against the US Dollar. The price started an upside move, broke the $65.00, $65.80, $67.00 and $68.00 resistance levels, and settled above the 100 hourly simple moving average.
The price even traded above the $69.00 resistance and formed a high at $69.19. Later, there was a downside correction and the price declined below $69.00 and the 23.6% Fib retracement level of the last wave from the $67.32 low to $69.19 high.
The price dropped below the $68.50 level, but buyers appeared near the $68.20 level. Moreover, the 50% Fib retracement level of the last wave from the $67.32 low to $69.19 high also acted as a strong support.
On the downside, there is a major bullish trend line formed with support at $68.20 on the hourly chart. Below the trend line, there is a horizontal support near the $68.00 level. As long as the price is above these supports, the price is likely to remain in an uptrend towards $69.00. Above $69.00, the price will most likely break $69.19 for more gains in the near term.
Also published on Medium.
