Crude Oil Price Update – Best Topping Signal Will Be Closing Price Reversal

July West Texas Intermediate crude oil futures are trading marginally higher shortly after the regular U.S. opening. Concerns over supply disruptions are helping to generate the upside momentum.

According to reports, the U.S. is considering new sanctions on Venezuela. This could cripple its oil industry and economy. Traders are also pricing in the effects of looming sanctions on major oil exporter Iran.

Later today, traders will get the opportunity to react to the latest inventories data from the American Petroleum Institute.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Today’s early strength has reaffirmed the uptrend. A trade through $70.24 will change the main trend to down.

The minor trend is also up. A move through $71.09 will change the minor trend to down.

The new short-term range is $70.24 to $72.78. Its 50% level or pivot comes in at $71.51.

The main range is $66.77 to $72.78. Its retracement zone at $69.78 to $69.07 is the primary downside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the crude oil market today will be determined by trader reaction to yesterday’s close at $72.35.

A sustained move over $72.35 will indicate the presence of buyers.

A sustained move under $72.35 will put the market in a position to form a potentially bearish closing price reversal top. This will indicate the selling is greater than the buying at current price levels. Furthermore, it could lead to the start of a 2 to 3 day correction.