U.S. West Texas Intermediate crude oil futures are trading slightly higher shortly after the regular session opening after giving up nearly all of its earlier gains. Oil prices hit nearly a six-month high on Tuesday on a continuing reaction to President Trump’s decision to lift the waivers on Iranian oil exports.
At 12:49 GMT, June WTI crude oil is trading $65.65, up $0.10 or +0.15%. This is down from an intraday high of $66.19.
The pressure is likely being generated by profit-taking after a nearly 3% rise in prices on Monday. Furthermore, there are concerns that Russia or Saudi Arabia will step up production to meet the new nearly 1 million barrel per day deficit.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was confirmed earlier in the session. A trade though $63.15 will change the main trend to down. This is highly unlikely. However, due to the prolonged rally in terms of price and time, the market is ripe for a closing price reversal top. This chart matter may not change the trend to down, but it could alleviate some of the upside pressure for 2 to 3 days.
Daily Technical Forecast
If buyers decide to resume the rally then look for a breakout to the upside over the intraday high at $66.19. This could trigger a surge into the downtrending Gann angle at $67.02.
If sellers take control then look for an acceleration to the downside when the market turns lower for the session. This could trigger a break into the steep uptrending Gann angle at $65.15. We could see a technical bounce on the first test of this support angle.
If it fails then look for the selling to possibly extend into the next uptrending Gann angle at $64.67. Once again look for buyers. If the selling pressure resumes on a break through this angle then we’re likely to see a test of another uptrending Gann angle at $64.15.