Crude Oil Price Update -Strengthens Over $69.02, Weakens Under $67.63

U.S. West Texas Intermediate crude oil futures are edging lower on Tuesday as investors continue to assess the damage from Hurricane Ida on production facilities, while fretting over the possibility of more supply from OPEC+. China’s slowing economic growth also weighed on investor sentiment.

At 02:45 GMT, October WTI crude oil futures are trading $68.79, down $0.42 or -0.61%.

China’s factory activity expanded at a slower pace in August as coronavirus-related restrictions and high raw material prices pressure manufacturers in the world’s second largest economy, while services activity contracted sharply, national data showed Tuesday.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Monday when buyers took out the previous main top at $69.39. The lack of follow-through on the move suggests it was likely fueled by buy stops rather than aggressive new buying. A trade through $61.74 will change the main trend to down.

The short-term range is $73.52 to $61.74. The market is currently testing its retracement zone at $67.63 to $69.02. The next short-term move will likely be determined by trader reaction to this area.

The minor range is $61.74 to $69.64. Its 50% level at $65.59 is the next potential downside target and support.

The main support is the retracement zone at $65.51 to $63.32.

Daily Swing Chart Technical Forecast

The direction of the October WTI crude oil futures contract on Tuesday is likely to be determined by trader reaction to $69.02.

Bullish Scenario

A sustained move over $69.02 will indicate the presence of buyers. The first upside target is Monday’s high at $69.64. This is a potential trigger point for an acceleration to the upside since the next major target doesn’t come in until $73.52.

Bearish Scenario

A sustained move under $69.02 will signal the presence of sellers. The first downside target is the 50% level at $67.63. Buyers could come in on the first test of this level.

Taking out $67.63 will indicate the selling pressure is getting stronger. This could trigger a break into the minor pivot at $65.59, followed by the main 50% level at $65.51.