Crude Oil Price Update – Uptrending Gann Angle at $67.86 Guilding Market Higher

June West Texas Intermediate crude oil futures are trading higher shortly after the regular session opening. The market rallied earlier in the session, but the buying stopped shortly before the $69.55 main top. Although the market is higher for the session, it has given back more than half of its earlier gains and is currently trading below the opening.

The price action may be indicating that the selling is greater than the buying at current price levels. Brent crude oil is the leader right now so if it turns lower, it should take the WTI futures contract with it.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the inability to take out last week’s high is an indication that momentum may be getting ready to shift to the downside.

A trade through $69.55 will negate last Thursday’s closing price reversal top and signal a resumption of the uptrend. A move through $67.14 will change the main trend to down.

The short-term range is $69.55 to $67.14. Its 50% level or pivot at $68.35 is controlling the direction of the market.

The intermediate range is $65.59 to $69.55. Its 50% level or pivot at $67.57 is the next downside target.

The main range is $61.86 to $69.55. If the trend changes to down then its retracement zone at $65.71 to $64.80 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, if buyers continue to come in to support the market then we could see a move back to last week’s high at $69.55. If sellers take control then look for a possible pullback into the pivot at $68.35, followed by a steep uptrending Gann angle at $67.86. This angle, moving at a rate of $0.50 per day has been guiding the market higher since April 6.

The market may not move today until after the release of the American Petroleum Institute data late in the session.