Crude oil prices drop to $76.51, down 2.4%

Crude oil continues its run to the downside. The price is now down for the 4th consecutive days. Since reaching a high price of $83.10 on Wednesday of last week, the price has moved down nearly 8%.

Technically, the price fell below its 200-day moving average on Friday. Today the high corrective price reached $78.73. That was just below its 200 day moving average at $78.75. Bearish.

The next target area comes between $75.32 and $76.17 (See yellow area on the chart below and read number circles on the chart below). There should be some support against the level but the market continues to suffer from expectations of slower growth in China and potentially in the US as well.

This article was written by Greg Michalowski at www.forexlive.com.