Crude Oil Price Update – Buyers Stepping in to Defend Against Closing Price Reversal Top

U.S. West Texas Intermediate crude oil futures are trading slightly higher shortly after the regular session opening after giving up nearly all of its earlier gains. Oil prices hit nearly a six-month high on Tuesday on a continuing reaction to President Trump’s decision to lift the waivers on Iranian oil exports.

At 12:49 GMT, June WTI crude oil is trading $65.65, up $0.10 or +0.15%. This is down from an intraday high of $66.19.

The pressure is likely being generated by profit-taking after a nearly 3% rise in prices on Monday. Furthermore, there are concerns that Russia or Saudi Arabia will step up production to meet the new nearly 1 million barrel per day deficit.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was confirmed earlier in the session. A trade though $63.15 will change the main trend to down. This is highly unlikely. However, due to the prolonged rally in terms of price and time, the market is ripe for a closing price reversal top. This chart matter may not change the trend to down, but it could alleviate some of the upside pressure for 2 to 3 days.

Daily Technical Forecast

If buyers decide to resume the rally then look for a breakout to the upside over the intraday high at $66.19. This could trigger a surge into the downtrending Gann angle at $67.02.

If sellers take control then look for an acceleration to the downside when the market turns lower for the session. This could trigger a break into the steep uptrending Gann angle at $65.15. We could see a technical bounce on the first test of this support angle.

If it fails then look for the selling to possibly extend into the next uptrending Gann angle at $64.67. Once again look for buyers. If the selling pressure resumes on a break through this angle then we’re likely to see a test of another uptrending Gann angle at $64.15.