Crude oil futures are trading higher today, changing hands at $85.41, up roughly $2 on the session.

The intraday high reached $86.79, the strongest level since August 21. At those session highs, price was testing the key 100-day moving average at $86.73.

Buyers briefly pushed price above that moving average, but momentum faded quickly and price rotated back down. In other words, the buyers had their shot, and they missed.

Moving averages like the 100-day and 200-day are widely followed benchmarks in technical analysis, and a rejection at one often draws attention from trend-following traders. A failed breakout above such a level can shift near-term positioning, as traders who bought the push higher may exit, adding to downward pressure.

So what comes next?

With sellers prevailing near the highs and the 100-day moving average, the ball is now in their court. They need to demonstrate they can take control — or more control — by breaking through downside targets.

The first level to watch is the 200-hour moving average at $84.17. A break below that would put the 100-hour moving average at $82.82 in play as the next target.

Below that, traders would begin eyeing the upward-sloping trendline near $80, followed by the 200-day moving average at $78.09. These intraday levels, such as the 100-hour and 200-hour averages, are commonly used by shorter-term traders to time entries and exits, which is why they often act as reference points when momentum shifts.

On the flip side, if price cannot push below the 200-hour moving average with any real momentum, buyers remain in the game. However, they would need to reclaim the 100-day moving average and hold above it — doing so would open the door to further upside.

The key dynamic today is that buyers had their opportunity and failed to capitalize. That gives sellers the best hand, though with work still to do.

Source: Investinglive