Crude Oil Price Update – Trend Changes to Down on Trade Through $67.14

June West Texas Intermediate crude oil futures are trading slightly lower shortly before the regular session opening. Sellers came in late Tuesday following the report of a surprise inventories build by the American Petroleum Institute.

At 1159 GMT, June WTI crude oil is trading $67.63, down $0.07 or -0.10%.

Later today at 1430 GMT, investors will get the opportunity to react to the latest U.S. Energy Information Administration inventories report which is expected to show a 1.6 million barrel draw down.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is starting to trend lower.

A trade through $67.14 will change the main trend to down. This could trigger an acceleration to the downside with the next main bottom at $65.59 the target.

A trade through $69.55 will negate the closing price reversal top that is influencing the price action. This will also signal a resumption of the uptrend.

The main range is $61.86 to $69.55. Its retracement zone at $65.71 to $64.80 is the primary downside target.

The intermediate range is $65.59 to $69.55. Its 50% level or pivot is $67.57. The market is currently straddling this level.

The short-term range is $69.55 to $67.14. Its 50% level or pivot is $68.35. This price may act like resistance.

Daily Technical Forecast

Based on the early trade, the direction of the crude oil market today is likely to be determined by trader reaction to the pivot at $67.57.

A sustained move over $67.57 will indicate the presence of buyers. If this move generates enough upside momentum, we could see a test of a potential resistance cluster at $68.32 to $68.35. Overtaking this area will put the market in a position to challenge $69.38 then $69.55.

A sustained move under $67.57 will signal the presence of sellers. This could lead to a quick test of an uptrending Gann angle at $67.32. If this angle fails to hold then look for the selling to extend into the main bottom at $67.14.

Taking out $67.14 will change the trend to down. This could trigger an acceleration to the downside with the next target a potential support cluster at $65.71 to $65.59.