Crude Oil Price Update – Strengthens Over $69.55, Weakens Under $67.10.

June West Texas Intermediate Crude Oil futures are trading lower shortly after the regular session opening, but inside yesterday’s range. The chart pattern suggests investor indecision and impending volatility.

Pressuring crude oil futures are concerns over rising U.S. production and the impact of the stronger U.S. Dollar on future demand.

Helping to limit losses are worries that President Trump will pull out of the Iran nuclear deal. Trump has given Britain, France and Germany a May 12 deadline to fix what he views as the deal’s flaws or he will reimpose sanctions. This could disrupt supply.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. It turned down early last week when the market poked through the previous main bottom at $67.14. There wasn’t much of a response to the move and the selling stopped at $67.11.

A trade through $67.11 will reaffirm the downtrend. Taking out $69.55 will change the main trend to up.

The market is being manipulated by a series of retracement levels. Trader reaction to these levels will determine the near-term direction of the market.

The intermediate range is $65.59 to $69.55. Its retracement zone at $67.57 to $67.10 is providing support.

The short-term range is $69.55 to $67.11. Its 50% level or pivot is $68.33.

The main range is $61.86 to $69.55. Its retracement zone at $65.71 to $64.80 is the primary downside target.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the crude oil market the rest of the day is likely to be determined by trader reaction to $68.33.

A sustained move under $68.33 will indicate the presence of sellers. This could drive the market into a series of potential support levels at $67.57, $67.11 and $67.10. Since the main trend is up, buyers may come in on a test of these levels.

Look for an acceleration to the downside if $67.10 fails as support. The next downside targets are $65.71 and $65.59.

A sustained move over $68.33 will signal the return of buyers. This could trigger a move into a series of main tops at $69.34, $69.38 and $69.55. The latter is the trigger point for an acceleration into a major 50% level at $72.87.