Crude Oil Price Update – Holding $66.54 Could Lead to Test of $68.54 to $68.72

U.S. West Texas Intermediate crude oil futures are trading higher on Thursday. The market is getting help from a recovery in the U.S. equity markets. Fundamentally, traders are a little cautious ahead of the start of sanctions against Iranian exports on November 4 and rising U.S. production. There is also talk that the sell-off this week in the global equity markets is an indication of a weakening global economy and lower future demand for crude oil.

At 1248 GMT, December WTI crude oil futures are trading $67.27, up $0.45 or +0.67%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend was changed to down when sellers took out $67.74 and $66.50 earlier in the week.

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. It is also resistance.

Daily Technical Forecast

Based on the early price action, the direction of the December WTI crude oil futures contract is likely to be determined by trader reaction to the uptrending Gann angle at $66.54.

A sustained move over $66.54 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential rally into a resistance cluster at $68.54 to $68.72. This is formed by a Fibonacci level and a downtrending Gann angle, respectively. Since the main trend is down, sellers could step in on a test of this area.

A sustained move under $66.54 will signal the presence of sellers. The first target is this week’s low at $65.74, followed by an uptrending Gann angle at $65.01. This is the last potential support angle before the $63.48 main bottom.