Crude has risen over 25% since its bottom on Christmas Eve. The $42.50 level was a clear level that acted as support and resistance over the past 4 years (1st chart below). Quick fingers or a precise limit order would have been needed in order to get that price on the 24th. Oil prices jumped quickly from there on increasing volume in January.
![](https://catalyst-insights.com/wp-content/uploads/2019/05/1558574379_567_1.png)
Last week, oil completed a nearly 100% retracement of its one-month dive and pullback.
![](https://catalyst-insights.com/wp-content/uploads/2019/05/1558574379_112_2.png)
That retracement tested a resistance level just under $53.50 which is approximately at the 50-day moving average. A group of technical indicators went to overbought territory on this rebound (as expected) and are turning downward, making oil look technically weak. The round number $50 support can be looked at for nearby support, as it was used as support numerous times in November and again in December.
![](https://catalyst-insights.com/wp-content/uploads/2019/05/1558574379_963_3.png)
The post Oil Prices Hitting Resistance & Technically Looking Weak appeared first on Catalyst Hedged Commodity Strategy Fund Blog.