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Crude Oil Price Update – Trading on Strong Side of Retracement Zone with $73.52 Nearest Major Target

By:
James Hyerczyk
Published: Sep 2, 2021, 19:09 UTC

The direction of the October WTI crude oil market into the close will be determined by trader reaction to the short-term Fibonacci level at $69.02.

WTI Crude Oil

In this article:

U.S. West Texas Intermediate crude oil futures are up over 2.50% late Thursday, bouncing back from a recent steep sell-off on optimism over the strength of the global economy in the wake of a resurgence of coronavirus cases.

Prices were also bolstered by a weaker U.S. Dollar which made the dollar-denominated asset more attractive to foreign buyers. Traders also continued to react to Wednesday’s U.S. Energy Information Administration weekly inventories report which showed a larger-than-expected draw in crude oil stockpiles.

At 18:32 GMT, October WTI crude oil futures are trading $70.32, up $1.73 or +2.52%.

On Wednesday, OPEC+ agreed to continue a policy of phasing out record production reductions by adding 400,000 barrels per day (bpd), it also raised its demand forecast for 2022, offsetting the potential bearishness generated by the output hike.

Daily October WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend strengthened when buyers took out the minor top at $69.64, which was Monday’s high. A trade through $61.74 will change the main trend to down.

The minor trend is also up. A trade through $67.12 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is $73.52 to $61.74. October WTI crude oil is currently trading on the strong side of its retracement zone at $69.02 to $67.63, making it new support.

The main support zone is $65.51 to $63.32. This zone is controlling the near-term direction of the market.

Daily Swing Chart Technical Forecast

The direction of the October WTI crude oil market into the close on Thursday will be determined by trader reaction to the short-term Fibonacci level at $69.02.

Bullish Scenario

A sustained move over $69.02 will indicate the presence of buyers. Taking out the intraday high at $70.61 will indicate the buying is getting stronger. The daily chart indicates there is plenty of room to the upside with $73.52 the next likely upside target. The opens up the possibility of an acceleration to the upside.

Bearish Scenario

A sustained move under $69.02 will signal the presence of sellers. This could trigger a further decline into the 50% level at $67.63. Taking out the minor bottom at $67.12 will shift momentum to the downside.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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