Crude Oil Price Update – Pivot at $73.71 Controlling Direction Today

A sustained move under $73.71 will signal the presence of sellers. If this generates enough downside momentum, we could see a steep break into last week’s low at $72.14.·FX Empire
James Hyerczyk
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August West Texas Intermediate crude oil futures are trading lower on Monday in limited trade. Supporting the market has been concerns over tight supply at the Cushing, Oklahoma delivery hub. Pressuring prices has been uncertainty over the number of exports to expect from the Gulf region. These two events seem to have neutralized the price action.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $75.27 will signal a resumption of the uptrend.

The minor trend is down. It turned down on Friday. A trade through the new minor bottom at $72.14 will indicate the short-term selling pressure is getting stronger. It will also shift momentum to the downside.

The short-term range is $75.27 to $72.14. Its 50% level or pivot at $73.71 is currently being tested. It appears to be controlling the price action today.

On the downside the first support is the long-term Fibonacci level at $70.51.

The main range is $63.40 to $75.27. Its retracement zone at $69.34 to $67.93 is the primary downside target. Since the main trend is up, we’re going to call this a value zone.

Daily Technical Forecast

Based on the early price action and the current price at $73.71, the direction of the August WTI crude oil futures contract today is likely to be determined by trader reaction to the 50% level at $73.71.

A sustained move over $73.71 will indicate the presence of buyers. This could drive the market into a pair of downtrending Gann angles at $74.52 and $74.90. The latter is the last potential resistance angle before the $75.27 main top.

Overtaking $75.27 will signal a resumption of the uptrend with a steep Gann angle at $77.40 the next target. Crossing to the strong side of this angle will put the market in a bullish position.

A sustained move under $73.71 will signal the presence of sellers. If this generates enough downside momentum, we could see a steep break into last week’s low at $72.14.

Taking out $72.14 will indicate the selling is getting stronger with the next targets coming in at $70.51 and $70.40.

This article was originally posted on FX Empire

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