Crude Oil Price Update – Trade Through $70.03 Confirms Closing Price Reversal TopBased on the early price action, the direction of the November WTI Crude Oil market the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at $70.29.
U.S. West Texas Intermediate Crude Oil futures are trading higher shortly before the cash market opening on Friday. Traders appear to be shrugging off a series of tweets by President Trump on Thursday criticizing OPEC policy and calling for the cartel and its allies to address the issue of rising prices. Continuing to underpin prices are concerns over a supply shortage due to the looming sanctions on Iran.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, yesterday’s closing price reversal top may be signaling a shift in momentum.
A trade through $71.35 will negate the closing price reversal top and signal a resumption of the uptrend. A move through yesterday’s low at $70.03 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day correction.
The short-term range is $67.79 to $71.35. Its retracement zone at $69.57 to $69.15 is the first downside target. The main range is $66.67 to $71.35. Its retracement zone at $69.01 to $68.46 is the second downside target.
The combination of the two retracement zones creates a support cluster at $69.15 to $69.01. This is the best downside target. Since the main trend is up, buyers are likely to come in on a test of this area.
Daily Technical Forecast
Based on the early price action, the direction of the November WTI Crude Oil market the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at $70.29.
A sustained move over $70.29 will indicate the presence of buyers. If this move creates enough upside momentum then look for a drive toward $71.35. Taking out this level will signal a resumption of the uptrend.
A sustained move under $70.29 will signal the presence of sellers. The daily chart is wide open under this angle with the next target the short-term 50% level at $69.57.
If $69.57 fails as support, we could see an acceleration into a cluster of potential support prices at $69.17, $69.15, $69.04 and $69.01. Since the main trend is up, look for buyers to show up on a test of $69.17 to $69.01.