Crude Oil Price Update – Testing More than Two-Year High after Reversing Earlier Losses

U.S. West Texas Intermediate crude oil futures are trading higher late in the session on Tuesday after reversing earlier losses. The market is also testing its highest level in more than two years after the top U.S. diplomat said that even if the United States were to reach a nuclear deal with Iran, hundreds of U.S. sanctions on Tehran would remain in place.

That could mean additional Iranian oil supply would not be re-introduced into the market soon, which lifts one of the worries that may have been weighing on prices earlier in the session.

At 20:03 GMT, July WTI crude oil is trading $70.23, up $1.00 or +1.44%. This is up from an intraday low of $68.47.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out Monday’s closing price reversal top at $70.00. A trade through $61.56 will change the main trend to down.

The minor trend is also up. The new minor bottom is $68.47. A trade through this level will change the minor trend to down and shift momentum to the downside.

The minor range is $65.25 to $70.27. Its retracement zone at $67.76 to $67.17 is the nearest support.

The main range is $61.56 to $70.27. Its retracement zone at $65.92 to $64.89 is controlling the near-term direction of the market.

Both retracement zones will move up as the market moves higher.

Daily Swing Chart Technical Forecast

The direction of the July WTI crude oil market into the close on Tuesday will be determined by trader reaction to $69.23.

Bullish Scenario

A sustained move over $69.23 will indicate the presence of buyers. Taking out the intraday high at $70.27 will indicate the buying is getting stronger. This could create enough upside momentum to drive the market into $72.00.

Bearish Scenario

A sustained move under $69.23 will signal the presence of sellers. This could trigger a break into the minor bottom at $68.47. If this price level fails as support then look for the selling to possibly extend into the minor support zone at $67.76 to $67.17.