Crude Oil Price Update – Trading Inside Contract Retracement Zone at $65.15 to $70.86
U.S. West Texas Intermediate crude oil futures settled lower last week. The market rallied early in the week due to speculative buying related to hurricane concerns, but worries about demand because of trade tensions and a stronger U.S. Dollar triggered a break. Weaker equity markets also drove investors out of crude oil.
Last week, November WTI crude oil settled at $67.75, down $2.05 or -2.94%.
Your capital is at risk
Weekly Swing Chart Technical Analysis
The main trend is up according to the weekly chart. A trade through the main top at $71.10 will signal a resumption of the uptrend. The main trend will change to down on a trade through $62.48.
The contract’s 50% to 61.8% zone is $65.15 to $70.86. This is the zone controlling the longer-term direction of the market. You can see that the market has basically been trading inside this zone for about 4 months.
The short-term range is $71.10 to $62.48. Its 50% level or pivot falls inside this zone. It provided support last week.
The main range is $54.50 to $71.10. Its retracement zone at $62.80 to $60.84 is the primary downside target.
Weekly Swing Chart Technical Forecast
Based on the recent price action, the direction of the November WTI crude oil futures contract is likely to be determined by trader reaction to the short-term pivot at $66.79.
A sustained move over $66.79 will indicate the presence of buyers. If this move can generate enough upside momentum then look for a potential run into the major Fibonacci level at $70.86. This is followed by last week’s high at $70.98 and the main top at $71.10. The latter is a potential trigger point for an acceleration to the upside.
A sustained move under $66.79 will signal the presence of sellers. The next downside target is the major 50% level at $65.15. This is the trigger point for a potential acceleration into the main 50% level at $62.80 and the main bottom at $62.48.
The trend will change to down on a move through $62.48. This could lead to a further break into the main Fibonacci level at $60.84.