FXEMPIRE
All

Crude Oil Price Update – Main Trend Changes to Up on Trade Through $69.31

Based on the early price action, the direction of the September WTI crude oil market on Wednesday is likely to be determined by trader reaction to the 50% level at $67.99. The main trend is down according to the daily swing chart. A trade through $69.31 will change the main trend to up. This will also make $67.56 a new main bottom.
James Hyerczyk
Crude Oil
Crude Oil

U.S. West Texas Intermediate oil futures are trading slightly higher early Wednesday. The market is being supported by the American Petroleum Institute’s weekly inventories report which showed bigger-than-expected draw downs in crude oil, gasoline and distillates.

At 630 GMT, September WTI crude oil is trading $68.80, up $0.28 or +0.41%.

Crude oil drew down 3.16 million barrels during the week-ending July 21, versus an estimate of 2.331 million barrels. Gasoline inventories fell 4.87 million barrels, well above the forecast for a 713,000 barrel drawdown. Distillate inventories dropped 1.32 million barrels, versus a forecast for a build of 207,000 barrels.

Daily September WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $69.31 will change the main trend to up. This will also make $67.56 a new main bottom.

A failure to take out $69.31 means a move through $66.29 will signal a resumption of the downtrend.

The price action is also being manipulated by a pair of 50% levels.

The main trend is $62.99 to $72.98. Its retracement zone is $67.99 to $66.81. This zone is controlling the longer-term direction of the crude oil market.

The short-term range is $72.98 to $66.29. Its retracement zone at $69.64 to $70.42 is the primary upside target. Even if the trend changes to up on a trade through $69.31, the market is likely to run into resistance inside this zone.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September WTI crude oil market on Wednesday is likely to be determined by trader reaction to the 50% level at $67.99.

A sustained move over $67.99 will indicate the presence of buyers. If this generates enough upside momentum, then look for a test of $69.31. Taking out this top will indicate the buying is getting stronger. This should lead to a test of $69.64 to $70.42, followed by $70.60.

A sustained move under $67.99 will signal the presence of sellers. Taking out $67.56 indicate the selling is getting stronger. This could drive the market into $66.81 then $66.29. The daily chart is wide open to the downside under $66.29.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US