Crude Oil Price Update – Upside Bias Develops Over $57.41
U.S. West Texas Intermediate crude oil futures finished higher on Friday, but still managed to lose ground for the week. Prices were supported by a better-than-expected U.S. Non-Farm Payrolls report, which somewhat eased concerns over a slowing economy. The market was also underpinned by tensions between the United States and China. Worries over global demand continued to limit gains.
On Friday, September WTI crude oil futures settled at $57.51, up $0.17 or +0.30%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. However, the July 3 minor reversal bottom and the follow-through confirmation on Friday, may be shifting momentum to the upside.
A trade through $56.04 will negate the chart pattern and signal a resumption of the downtrend. The main trend will change to up on a move through $60.28.
The short-term range is $50.79 to $60.28. Its retracement zone at $55.54 to $54.42 is potential support.
The intermediate range is $64.03 to $50.79. Its retracement zone at $57.41 to $58.97 is potential resistance.
The main range is $66.22 to $50.79. Its retracement zone at $58.50 to $60.32 is also resistance. It stopped rallies at $59.93 and $60.28 recently.
Daily Swing Chart Technical Forecast
Based on Friday’s close at $57.51, the direction of the September WTI crude oil market on Monday is likely to be determined by trader reaction to the 50% level at $57.41.
A sustained move over $57.41 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for the rally to continue into the 50% level at $58.50 and the Fibonacci level at $58.97. The latter is a potential trigger point for an acceleration into the main top at $60.28, followed by the main Fibonacci level at $60.32.
A sustained move under $57.41 will signal the presence of sellers. The first target is the minor bottom at $56.04. This is followed by the short-term retracement zone at $55.54 to $54.42.