Crude Oil Price Update – Could Retrace into 200-Day Moving Average at $60.59

Based on the early price action, the direction of the July WTI crude oil market the rest of the session is likely to be determined by trader reaction to the major 50% level at $59.70.
James Hyerczyk
Crude Oil

U.S. West Texas Intermediate crude oil futures are trading higher on Tuesday, shortly after the regular session opening. The price action suggests that the market is still garnering support from the OPEC-led support cuts and the U.S. sanctions against Iran and Venezuela.

The price action is also supporting the notion that the May 23 sell-off was fueled by sell stops rather than aggressive short-selling. If this is the case then prices could rally back into those former support levels which have been identified as a long-term 50% level and a 200-day moving average level.

At 13:16 GMT, July WTI crude oil is trading at $59.54, up $0.92 or +1.57%.

Daily July WTI Crude Oil

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $57.33 will signal a resumption of the downtrend. The main trend will change to up on a move through $63.96. This is highly unlikely today, however, but there is still room for a normal 50% to 61.8% retracement.

The major 50% level is at $59.70. This zone could act like resistance on the first test of this level.

The short-term range is $63.96 to $57.33. Its retracement zone at $60.65 to $61.43 is the primary upside target and potential resistance area. Since the main trend is down, look for sellers on the first test of this area.

On the downside, the major support is a 50% level at $55.32.

Daily Technical Forecast

Based on the early price action, the direction of the July WTI crude oil market the rest of the session is likely to be determined by trader reaction to the major 50% level at $59.70.

Bearish Scenario

A sustained move under $59.70 will indicate the presence of sellers. If this move creates enough downside momentum then we could see a drive into an uptrending Gann angle at $57.46, followed by last week’s low at $57.33.

Bullish Scenario

A sustained move over $59.70 will signal the presence of buyers. This could lead to a labored rally with potential targets a downtrending Gann angle at $60.19, the 200-day moving average at $60.59 and a short-term 50% level at $60.65.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.