Crude Oil Price Update - Trader Reaction to $39.36 to $39.63 Sets The Tone - FX Empire

U.S. West Texas Intermediate crude oil prices are trading higher, boosted by a weaker U.S. Dollar and stronger-than-expected demand for higher risk assets. The market is also being supported by improving economic data although gains could be limited by sharp spikes in the number of COVID-19 cases that could force some countries to reimpose strict restrictions and lockdowns. This could have an impact on demand for fuel.

At 12:14 GMT, August WTI crude oil is trading $39.06, up $0.57 or +1.48%.

Crude oil found some support as profits at China’s industrial firms rose for the first time in six months in May, suggesting the country’s economic recovery is gaining tractions. A recovery of economic sentiment in the Euro Zone also intensified in June after a modest pick-up in May.

Daily August WTI Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend changes to down on a trade thorough $34.66, while a move through $41.63 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the downside momentum. A trade through $37.08 will indicate the selling is getting stronger. The minor trend changes to up on a move through $39.35.

On the downside, support is a series of 50% levels at $38.15, $37.50 and $36.63.

The minor range is $41.63 to $37.08. Its 50% level or pivot at $39.36 is potential resistance, but also a trigger point for an acceleration to the upside.

Daily Technical Forecast

If the upside momentum continues then look for buyers to make a run at the resistance cluster at $39.35 to $39.36. This is followed by a downtrending Gann angle at $39.63. Watch for a technical bounce on the first test of this downtrending Gann angle. This angle is also a trigger point for an acceleration to the upside with the first target another Gann angle at $40.63.

A failure at $39.35 to $39.63 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 50% levels at $38.15 and $37.50, followed by an uptrending Gann angle at $37.13.



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