Crude Oil Price Update – Divergence from Stock Market Weakness Could Be Early Bullish SignBased on the early price action, the direction of the December WTI Crude Oil market is likely to be determined by trader reaction to the uptrending Gann angle at $66.61.
U.S. West Texas Intermediate Crude Oil appears to be trying to diverge itself from the downside stock market volatility at the mid-session on Friday. Despite another lower-low in the stock market, crude oil held above its low for the week at $65.74 for a third straight session and is now trading slightly higher for the day.
At 1637 GMT, December WTI Crude Oil is trading $67.49, up $0.16 or +0.24%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The trend turned down on Tuesday when prices spiked through a pair of main bottoms at $67.74 and $66.50.
A trade through $65.74 will signal a resumption of the downtrend. If this creates enough downside momentum then the next target will be the August 16 main bottom at $63.48.
The main range is $63.48 to $76.72. Its retracement zone at $68.54 to $70.10 is controlling the near-term direction of the market. At this time, it is considered resistance.
Daily Technical Forecast
Based on the early price action, the direction of the December WTI Crude Oil market is likely to be determined by trader reaction to the uptrending Gann angle at $66.61.
A sustained move over $66.61 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to extend into the steep downtrending Gann angle at $68.22. Since the main trend is down, sellers are likely to come in on the first test of this angle.
If buyers take out $68.22 then look for a potential spike into the main Fibonacci level at $68.54. This is another potential trigger point for an acceleration to the upside.
A sustained move under $66.61 late in the session will signal the presence of sellers. This could trigger a further decline into the low of the week at $65.74, followed by the next major uptrending Gann angle at $65.04. This is the last potential support angle before the $63.48 main bottom.