Crude Oil Price Update – Strengthens Over $70.42, Weakens Under $70.02

U.S. West Texas Intermediate crude oil futures are edging higher on Monday, boosted by an improving demand outlook due to the summer driving season and slow progress in talks between the U.S. and Iran regarding nuclear issues and the possible lifting of sanctions that could bring more oil into the market.

At 09:28 GMT, September WTI crude oil futures are trading $70.78, up $0.33 or +0.47%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $71.99 will signal a resumption of the uptrend. A trade through $61.06 will change the main trend to down.

The minor trend is also up. A trade through $68.05 will change the minor trend to down. This will also shift momentum to the downside. A move through $67.84 will reaffirm the downtrend.

The first minor range is $71.99 to $68.86. The market is currently trading on the strong side of its 50% level at $70.42, making it potential support.

A second minor range is $68.05 to $71.99. Its 50% level at $70.02 is another potential support level. This is followed closely by another 50% level at $69.92. Still another potential support level comes in at $68.29. This is the last potential support before the pair of minor bottoms.

Daily Swing Chart Technical Forecast

The direction of the September WTI crude oil futures contract on Monday is likely to be determined by trader reaction to the pivot at $70.42.

Bullish Scenario

A sustained move over $70.42 will indicate the presence of buyers. If this move generates enough upside momentum then look for the move to possibly extend into $71.99 over the short-run.

Bearish Scenario

A sustained move under $70.42 will signal the presence of sellers. The first downside target is the pivot at $70.02. If this fails then look for a potential acceleration to the downside with the next target last week’s low at $68.86, followed closely by another pivot at $68.29 and a pair of main bottoms at $68.05 and $67.84.