July West Texas Intermediate crude oil is trading lower shortly before the regular session opening. Pressuring the market today are concerns over rising U.S. production and the possibility of increased OPEC supplies.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The next downside target is the April 6 swing bottom at $61.73.
The minor trend is also down. A trade through $68.67 will change the minor trend to up. This will also shift momentum to the upside.
The main range is $61.73 to $72.90. Its retracement zone at $67.32 to $66.00 is new resistance. This zone is also controlling the near-term direction of the market. Trading below this zone will solidify the downside bias.
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Daily Technical Forecast
Based on the early trade, the direction of the July WTI futures contract is likely to be determined by trader reaction to the Fibonacci level at $66.00.
A sustained move under $66.00 will indicate the presence of sellers. This could lead to a test of a steep downtrending Gann angle at $64.90. Crossing to the weak side of this angle will mean the selling is getting stronger. This could lead to a test of the next uptrending Gann angle at $64.23.
The daily chart opens up to the downside under $64.23 with the uptrending Gann angle at $62.98 the next target. This is the last potential support angle before the $61.73 main bottom.
Overtaking $66.00 will signal the return of buyers. This could lead to a retest of an uptrending Gann angle at $66.73 and a 50% level at $67.32.