After briefly touching bear market territory earlier in the session, crude oil prices have caught a bounce intraday, taking WTI out of bear market territory (20% decline from closing high of $51.23). Despite the bounce, though, crude oil is still down 19.5% from its 2016 high, so it’s still very close to entering a new bear.
Taking a closer look at trading in crude oil this week, below we show an intraday chart over the last five days. In this chart, you can clearly see that today’s bounce (which is the biggest bounce we have seen all week) came just as prices touched on their 200-DMA as buyers stepped in at support. Now, can the bounce hold?