U.S. West Texas Intermediate crude oil futures are edging higher early Friday. The market is trying to follow-through to the upside following yesterday’s closing price reversal bottom. This move won’t mean the trend is changing, but it could fuel a 2 to 3 day counter-trend rally.
At 0751 GMT, October WTI crude oil is trading $65.00, up $0.12 or +0.18%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through $63.89 will signal a resumption of the downtrend with $62.60 the next target. The main trend will change to up on a trade through $67.72.
The main range is $62.60 to $71.29. Its retracement zone at $65.92 to $66.95 is the major resistance. It is controlling the longer-term direction of the market.
Daily Technical Forecast
Based on the early price action, the direction of the October WTI crude oil futures contract will be determined by trader reaction to the downtrending Gann angle at $64.72.
A sustained move over $64.72 will indicate the presence of buyers. This could trigger a quick move into the uptrending Gann angle at $65.29.
Overtaking $65.29 will indicate the counter-trend buying is getting stronger. This could trigger an acceleration to the upside with targets coming in at $65.92 and $66.22.
A sustained move under $64.72 will signal the presence of sellers. This could drive the market back into a long-term uptrending Gann angle at $63.94. This angle provided support on Wednesday and Thursday.
If $63.94 fails as support then look for the selling to extend into the next uptrending Gann angle at $63.27. This is the last potential support angle before the $62.60 main bottom.