Crude Oil Price Update – In Position to Test Major Retracement Zone at $67.99 to $66.81
Based on the early price action, the direction of the September WTI crude oil futures contract is likely to be determined by trader reaction to the steep uptrending Gann angle at $68.92.
September West Texas Intermediate crude oil futures are trading sharply lower shortly after the regular session opening after China announced it will hit $16 billion worth of U.S. goods, including crude oil, with a 25 percent tariff. Trader are also reacting to relatively weak import data.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through $70.43 will change the main trend to up. A move through $66.92 will signal a resumption of the downtrend.
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The minor trend is also down. A move through $69.92 will change the minor trend to up and shift momentum to the upside.
The main range is $72.98 to $66.29. Its retracement zone at $69.64 to $70.42 is resistance.
The major support is the retracement zone at $67.99 to $66.81.
Daily Technical Forecast
Based on the early price action, the direction of the September WTI crude oil futures contract is likely to be determined by trader reaction to the steep uptrending Gann angle at $68.92.
A sustained move under $68.92 will indicate the presence of sellers. If this move produces enough downside momentum then look for a break into the 50% level at $67.99, followed by an uptrending Gann angle at $67.92. We could see a technical bounce on the first test of this level.
If $67.92 fails then look for the selling to extend into the uptrending Gann angle at $67.42. This is the last potential support angle before the $66.92 main bottom and the $66.81 major Fibonacci level.
Overcoming $68.92 will signal the return of buyers. This could fuel a retest of $69.64, followed by $69.92.
