Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk
WTI Brent Crude Oil

U.S. West Texas Intermediate crude oil is under pressure on Monday after posting a stellar return in May. Renewed tension between the United States and China are behind the selling pressure. Early in the session, the market traded higher on reports that OPEC and Russia were closer to a deal on extending oil cuts.

At 13:43 GMT, July WTI crude oil futures are trading $34.61, down $0.88 or -2.48%.

Tension between the U.S. and China escalated on Monday after Beijing ordered major state-run firms to pause some purchases of U.S. farm goods, including soybeans, Bloomberg News reported.

On the positive side, OPEC and Russia, part of a group known as OPEC+, are moving closer to a compromise on the duration for extending oil output cuts and were discussing rolling over the curbs one to two months, two OPEC+ sources told Reuters.

Daily July WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out Friday’s high. A trade through $31.14 will change the main trend to down.

The minor trend is also up, however, turning lower for the session has put the market in a position to form a potentially bearish closing price reversal top. A confirmation of the chart pattern could lead to a 2 to 3 day correction, or even a change in trend if the follow-through selling is strong enough.

The main range is $54.86 to $17.27. Its retracement zone at $36.07 to $40.50 is the primary upside target. This zone is potential resistance. It is also controlling the longer-term direction of the market.


Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the July WTI crude oil market the rest of the session on Monday is likely to be determined by trader reaction to Friday’s close at $35.49.

Bearish Scenario

A sustained move under $35.49 will indicate the presence of sellers. If this move continues to generate enough downside momentum then look for a short-term move into $31.14. A trade through this level will change the main trend to down.

Bullish Scenario

A sustained move over $35.49 will signal the presence of buyers. The first upside target is the major 50% level at $36.07. Overtaking this level will indicate the buying is getting stronger. This could lead to an eventual test of the major Fibonacci level at $40.50.

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

  • Your capital is at risk
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.