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

U.S. West Texas Intermediate crude oil is trading higher at the mid-session on Tuesday, nearly moving lock-step with the major U.S. stock indexes. The catalysts behind the rally is growing confidence that producers will continue to adhere to their commitments to reduce supply and as fuel demand gradually increases with coronavirus restrictions easing.

At 16:57 GMT, July WTI crude oil is trading $33.86, up $0.61 or +1.83%.

Know where WTI Crude Oil is headed? Take advantage now with 

75% of retail CFD investors lose money

Both Russian and U.S. producers are being credited with doing their parts to follow-through on commitments to trim production and thereby reducing the supply glut.

The RIA news agency said Russian oil production volumes were near the country’s target of 8.5 million bpd for May and June. Meanwhile, in an indication of lower supply in the future, data from energy services firm Baker Hughes showed that the U.S. rig count hit a record low of 31.8 last week.

Daily July WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through $35.18 will change the main trend to up. A move through $17.27 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the upside momentum. A trade through $30.72 will change the minor trend to down. This will also shift momentum to the downside.

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 could be controlling the longer-term direction of the market.


Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $33.86, the direction of the July WTI crude oil market the rest of the session on Tuesday is likely to be determined by trader reaction to Friday’s close at $33.25.

Bullish Scenario

A sustained move over $33.25 will indicate the presence of buyers. If this is able to create enough upside momentum then look for a drive into the main top at $35.18, followed by the main 50% level at $36.07.

Bearish Scenario

A sustained move under $33.25 will signal the presence of sellers. This will put the market in a position to form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction of at least a 50% of the rally from $17.27.

Side Notes

Taking out the main top at $35.18 will be a bullish sign, but it may not be a good buying point because of the major retracement zone at $36.07 to $40.50 standing in the way.

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.