Advertisement
Advertisement

Crude Oil Price Update – Overtaking $69.95 Could Fuel Rally into $71.05 to $71.29

By:
James Hyerczyk
Published: Aug 30, 2018, 13:21 UTC

Based on the early trade, the direction of the October West Texas Intermediate crude oil futures contract is likely to be determined by trader reaction to a long-term downtrending Gann angle at $69.95.

Crude Oil

October West Texas Intermediate crude oil futures are trading higher on Thursday. The market is being supported by expectations of supply disruptions in Iran and Venezuela as well as the upside momentum created by yesterday’s U.S. Energy Information Administration’s weekly inventories report, which showed a bigger-than-expected drawdown. The International Energy Agency also helped underpin prices when it warned of supply issues later in the year as well as increased demand from Asia.

WTI Crude Oil
Daily October WTI Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart. Given the current upside momentum, buyers may make a run at a pair of tops at $71.05 and $71.29.

The market is not in a position to change the main trend to down, but it is in the window of time for a potentially bearish closing price reversal top. This could fuel the start of a 2 to 3 day correction. Furthermore, a break under the previous tops at $69.19 and $68.86 will indicate the selling is greater than the buying at current price levels.

The main range is $62.60 to $71.29. Its retracement zone at $68.46 to $67.59 is new support. Holding above this zone will help sustain the upside bias.

Daily Technical Forecast

Based on the early trade, the direction of the October West Texas Intermediate crude oil futures contract is likely to be determined by trader reaction to a long-term downtrending Gann angle at $69.95.

A sustained move over $69.95 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to extend into the next downtrending Gann angle at $70.62. This is the last potential resistance angle before the $71.05 and $71.29 main tops.

A sustained move under $69.95 will signal the presence of sellers. If this move creates enough downside momentum then look for sellers to make a run at the steep uptrending Gann angle at $68.89.

A failure to hold $68.89 will indicate the selling is getting stronger. This could trigger a further break into the Fibonacci level at $68.46.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement