Crude Oil Price Update – Weakens Under $41.24, Strengthens Over $41.72

U.S. West Texas Intermediate crude oil futures are edging lower at the mid-session, as rising coronavirus cases and tensions between the United States and China dampened optimism over an oil demand recovery. Nonetheless, the market is still on track to post its third straight monthly gain in July as supply cuts from the Organization of the Petroleum Exporting Countries and Russia provided support.

At 16:43 GMT, September WTI Crude oil is trading $41.15, down $0.19 or -0.51%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $42.51 will signal a resumption of the uptrend. The main trend will change to down on a move through $39.97.

The minor range is $39.97 to $42.51. Its 50% level at $41.24 is resistance. Trading on the weak side of this level is helping to give the market a downside bias today.

The main resistance is a longer-term 50% level at $41.72.

The short-term range is $37.32 to $42.51. Its 50% level at $39.26 is a potential downside target.

Daily Swing Chart Technical Forecast

Look for the intraday downside bias to continue as long as September WTI crude oil remains under the minor pivot at $41.24. If there is an acceleration to the downside then look for a test of the next main bottom at $39.97.

If $39.97 fails as support then look for the selling to possibly extend into the 50% level at $39.26, followed by the $38.77 main bottom.

On the upside, resistance comes in at $41.24, $41.72 and $42.51. The next rally is likely to be a labored event because of the series of potential resistance levels.