Crude Oil Price Update -Trend Changes to Down Under $70.24; Overcoming $73.27 Will Be Extremely Bullish

July West Texas Intermediate crude oil futures are trading higher shortly after the regular session opening. The volume was light and the range was tight during the overnight session.

The market is being supported by strong demand, the OPEC-led production cuts and the looming U.S. sanctions against Iran that could lead to supply disruptions. Gains are being limited by concerns over rising U.S. production. And worries ahead of the release of the Baker Hughes oil rig report due to come out later today.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $72.37 will signal a resumption of the uptrend.

The trend will change to down on a move through $70.24.

Daily Technical Forecast

Based on the early price action, the direction of the July WTI crude oil market will be determined by trader reaction to the short-term uptrending Gann angle at $71.24.

A sustained move over $71.24 will indicate the presence of buyers. If this move generates enough upside momentum then we could see a test of $72.37.

Overtaking $72.37 could trigger a rally into a steep uptrending Gann angle at $73.27. Overcoming this angle and sustaining the move will put the market in an extremely bullish position.

Breaking through $71.24 will signal the return of sellers. This could trigger an acceleration into the main bottom at $70.24, followed by another uptrending Gann angle at $70.02.