Crude Oil Price Update – Strengthens Over $69.33, Weakens Under $68.82

U.S. West Texas Intermediate Crude Oil futures settled higher on Tuesday after Bloomberg reported, citing unnamed Saudi sources, the kingdom was currently comfortable with prices above $80 per barrel, at least for the short-term. Ministers from OPEC and non-OPEC producers meet on Sunday to discuss compliance with output policies. OPEC sources have told Reuters no immediate action was planned and producers would discuss how to share a previously agreed output increase.

On Tuesday, November WTI Crude Oil settled at $68.77, up $1.22 or +1.81%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $70.89 and $70.98 will signal a resumption of the uptrend. This action would make $67.79 a new main bottom. Currently, the main bottom is $66.67, a trade through this level will change the main trend to down.

The short-term range is $70.98 to $66.67. Its retracement zone is $68.82 to $69.33. The market straddled his zone for three session before closing above it on Tuesday.

The main range is $63.69 to $70.98. Its retracement zone at $67.34 to $66.47 is support. This zone stopped the selling at $66.67 on September 7.

Daily Swing Chart Technical Forecast

Based on yesterday’s price action and the close at $69.59, the direction of the November WTI Crude Oil market early Wednesday is likely to be determined by trader reaction to the Fibonacci level at $69.33.

A sustained move over $69.33 will indicate the presence of buyers. The first target is yesterday’s high at $70.17. This is the last potential resistance before the main tops at $70.89 and $70.98.

A sustained move under $69.33 will signal the presence of sellers. This could trigger a fast break into $68.82. Watch for a technical bounce on the first test of this level, but if it fails as support, we could see a plunge into $67.79, followed by $67.63.