Crude Oil Price Update – Aggressive Sellers May Try to Form Secondary Lower Top
July West Texas Intermediate crude oil futures are trading slightly better after clawing back earlier losses. The main trend is up, but a new main top has formed at $71.80. A trade through this level will signal a resumption of the uptrend.
Daily Technical Analysis
The daily chart shows there is plenty of room to the downside if sellers continue to hit the market. The nearest uptrending Gann angle support comes in at $69.02.
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On the upside, the market is challenging a steep downtrending Gann angle at $70.80. Overcoming this angle will indicate the intraday buying is getting stronger.
Daily Technical Forecast
Based on the early price action, the direction of the July WTI futures contract the rest of the session is likely to be determined by trader reaction to the steep downtrending Gann angle at $70.80.
A sustained move under $70.80 will indicate the presence of sellers. If this creates enough downside momentum, we could see a move into the uptrending Gann angle at $69.02 over the near-term.
Overtaking $70.80 and sustaining the rally could trigger a rally into a potential resistance cluster at $71.27 to $71.30.
Overtaking $71.30 will indicate the buying is getting stronger. This could create the momentum needed to challenge the next downtrending Gann angle at $71.55. This is the last major resistance angle before the $71.80 main top.
Traders should watch the price action and read the order flow on tests of the downtrending Gann angles because aggressive counter-trend sellers may be trying to form a potentially bearish secondary lower top.