James Hyerczyk
Add to Bookmarks
WTI Crude Oil

Traders will be eyeing the June WTI crude oil opening on Sunday to see the impact if any on prices due to the shut down on Friday after a cyber-attack on the largest U.S. fuel pipeline system, Colonial Pipeline. The news has prompted worries about a spike in gasoline and diesel prices ahead of the peak summer driving season if the outage does not end soon.

On Friday, June WTI crude oil settled at $64.90, up $0.19 or +0.29%.

Know where WTI Crude Oil is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Since the shutdown could limit gasoline and diesel supply, prices in those to markets are expected to rally on the opening, but crude oil prices could actually fall if refineries demand less crude. This would cause a back-up in supply, which would be bearish.

Look for heightened volatility with the direction of the market undermined at this time.

Daily June WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on May 5.

A trade through $66.76 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through $62.91.

The minor range is $62.91 to $66.76. On Friday, the market closed on its pivot at $64.84.

The short-term range is $67.29 to $57.29. Its retracement zone at $63.47 to $62.29 is potential support. This zone is also controlling the near-term direction of the market.

The main support zone is $59.17 to $57.25.


Daily Swing Chart Technical Analysis

The direction of the June WTI crude oil market on Monday is likely to be determined by trader reaction to the minor pivot at $64.84.

Bullish Scenario

A sustained move over $64.84 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into the main top at $66.76, followed by the March 8 main top at $67.29. This price is a potential trigger point for an acceleration to the upside with $70.00 the next major target.

Bearish Scenario

A sustained move under $64.84 will signal the presence of sellers. This could create the downside momentum needed to challenge the Fibonacci level at $63.47, followed by the main bottom at $62.91 and the 50% level at $62.29.

Taking out $62.29 could trigger an acceleration to the downside with the next target the April 22 main bottom at $60.61.

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker