Crude oil futures fell sharply yesterday as traders weighed the chances of an end to the war with Iran. Senate Democratic Leader Chuck Schumer said Democrats would push to end the war and pointed to support from some Republicans. Crude was down close to 8% when I wrote about the move.The headlines helped drive the selloff. The technicals gave traders a place to lean against. Yesterday, I highlighted three levels within 27 cents of one another. The 50% midpoint of the move up from the July low came in at $86.93, the 100-day MA at $86.81 and the 200-day MA at $86.66. A move below that area that could stay below would give sellers room to roam. A hold would give buyers a shot at a bounce. Yesterday’s crude oil analysisToday’s low reached $86.65, a penny below the 200-day MA, and bounced. Crude is trading at $89.26, up $1.17, or about 1.3%, after reaching a high of $90.35.What do buyers need to get above?After a sharp move like yesterday’s, I like to measure the last trend leg to see how much of it buyers can take back. On the 5-minute chart, measuring from yesterday’s high to today’s low puts the 38.2% retracement at $90.68. Today’s high of $90.35 fell 33 cents short. As long as the price stays below $90.68, the sellers still have the upper hand on that trend leg.Get above $90.68 and stay above, and the focus shifts to $91.56, the broken 38.2% retracement of the broader rally from the early July low. Reclaiming that level would give buyers another reason to press toward $91.92, the 50% midpoint of the latest selloff. Taking back half of that decline would give buyers more control in the short term.Where is the risk for buyers?On a move lower, watch the 100- and 200-bar MAs on the 5-minute chart. A sustained move below both would tilt the short-term bias back toward the sellers and bring the $86.66–$86.93 support area back into focus. If sellers can get below today’s $86.65 low and stay below it, they’ll have done what they couldn’t do on the first test.Trading lesson — How much of the selloff can buyers take back?After a sharp selloff, I look for two clues. First, where do buyers show up? Second, how much of the decline can they take back? In crude oil, the first clue came at $86.65, where the price tested the 200-day MA and bounced. The second clue comes at $90.68, the 38.2% retracement of the last leg lower.I use 38.2% as a minimum retracement when judging whether buyers are starting to take back control. If the bounce stalls below that level, sellers still have the advantage on that leg. If the price gets above it and holds, especially on a retest, buyers have a nearby level to lean against. That gives them a way to define their risk while looking for the next target.There are two 38.2% levels in this setup because they measure two different moves. $90.68 measures how much of the latest selloff buyers have taken back. $91.56 measures the pullback of the broader rally from July and marks a level crude broke on the way down. Clearing the first would strengthen the bounce. Reclaiming the second would show buyers starting to repair some of the damage on the hourly chart. This article was written by Greg Michalowski at investinglive.com.