Crude Oil Price Update – Tracking Stock Market Price Action

U.S. West Texas intermediate crude oil futures are under pressure on Wednesday on renewed concerns over future demand. Sellers are pressuring crude oil futures amid escalating tensions between the United States and China that could result in a global economic slowdown. Traders fear that this slowdown will lead to a drop in demand and that Saudi Arabia and its allies would not be able to match the decline with additional production cuts.

At 14:24 GMT, July WTI crude oil futures are trading $57.93, down $1.21 or -2.00%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out last week’s low at $57.33. The main trend will change to up on a trade through $63.96. This is highly unlikely, however. Given the steep decline, the only pattern that can save the market from further weakness is the closing price reversal bottom.

On the upside, the resistance is a major 50% level at $59.70, followed by the 200-Day Moving Average at $60.58.

The main range is $44.20 to $66.44. Its retracement zone at $55.32 to $52.70 is the next major downside target.

Daily Technical Forecast

Based on the early price action, the direction of the July WTI crude oil market the rest of the session is likely to be determined by trader reaction to the long-term uptrending Gann angle at $57.45.

Bearish Scenario

A sustained move under $57.45 will indicate the presence of sellers. If this move creates enough downside momentum then look for a potential acceleration to the downside with the next target the 50% level at $55.32.

Bullish Scenario

A sustained move over $57.45 will signal the presence of buyers. If this move creates enough upside momentum then look for a possible rally into the major 50% level at $59.70.

Watch for heightened volatility throughout the session, but especially at 20:30 GMT with the release of the weekly storage report from the American Petroleum Institute.