Spot crude oil prices rose today but were unable to hold onto the gains following a strong move higher in the European equity markets. This comes after Friday’s steep losses on the heels of disappointing U.S. payrolls. Buying opportunities for the commodity appear near the support level of $80.
The price of spot crude oil was trading as high as $81.74 today; however, the commodity failed to hold the gains and has since slipped to its opening price of $81.
As European bourses rose, spot crude oil prices were pulled up as well. The DAX finished the day up 1.27%.
Last week spot crude oil prices breached above the resistance level of $80 that the commodity had failed to break since June.
After the release of Friday’s disappointing U.S. non-farm payrolls report, spot crude oil prices plummeted. The commodity fell to the support line at $80 .
The daily chart below shows this level has become a major support line. The $80 level (S1) has been used as a support or a resistance numerous times following the drop in prices in March, June, July, and this past Friday.
Resistance levels for spot crude oil come in at last week’s price high of $82.95 (S1), followed by the yearly high close to $87 (S2).
Two trend lines have also been drawn to show the recent uptrend. Traders should notice the slope of the second trend line has a much greater slope than the first trend line, indicating the commodity’s recent bullish move has increased in the last month.
