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Crude Oil Futures Rebound After Early Decline
Crude oil futures have experienced a rebound after initially trading lower, with buyers stepping in to defend a significant cluster of technical support. The lowest price reached was $91.70, just above the 38.2% retracement level of the rally from the July low to the September high, which stands at $91.60. The price remained above both the rising 100-hour moving average at $91.36 and the 200-hour moving average at $90.86, providing traders with a clear area to assess risk.
Currently, crude oil is trading near $93.79 after reclaiming the $93.48 level, which is crucial for maintaining upward momentum. The next target for buyers is yesterday's high at $94.36. A breakthrough above this level could lead to prices approaching the late-September highs near $96.50, followed by a swing area between $97.00 and $98.48.
For sellers to regain control, a move back below $93.48 would weaken the current rebound. However, they would still need to navigate through the support cluster between $91.60 and $90.86. A sustained break below these levels could shift focus to Monday's low near $89.60 and the September swing low at $88.72. Below these thresholds, traders would look towards the 50% midpoint of the July-to-September rally at $86.91, which was tested earlier this month.
Source: KLEA News