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U.S. West Texas Intermediate crude oil futures finished lower last week. Prices spiked lower after straddling a short-term 50% level for four weeks. After supporting the market on supply concerns due to the Iranian sanctions, buyers caved to selling pressure triggered by a jump in U.S. inventories and worries about future demand.
Last week, October WTI crude oil futures settled at $65.21, down $1.73 or -2.58%.
Weekly Technical Analysis
The main trend is up according to the weekly swing chart, however, momentum is trending lower. A trade through $62.60 will change the main trend to down. The main trend will resume on a trade through $71.63.
The minor trend is down. This trend indicator is controlling the momentum. A trade through $69.19 will change the minor trend to up as well as shift momentum to the upside.
The short-term range is $71.63 to $62.60. Its 50% level or pivot is resistance.
The intermediate range is $54.74 to $71.63. Its retracement zone at $63.19 to $61.19 is the next downside target. This zone stopped the selling at $62.60 during the week-ending June 22. Buyers could show up on a test of this zone.
The main range is $45.49 to $71.63. Its retracement zone at $58.56 to $55.48 is a major downside target.
Weekly Technical Forecast
Based on last week’s price action and the close at $65.21, the direction of the October WTI crude oil market this week is likely to be determined by trader reaction to the downtrending Gann angle at $65.13.
A sustained move under $65.13 will indicate the presence of sellers. If this move gains traction then look for the selling to extend into the intermediate 50% level at $63.19, followed by the main bottom at $62.60.
If $62.60 fails then look for the selling to extend into the intermediate Fibonacci level at $61.19, followed by the long-term uptrending Gann angle at $60.74. This is a potential trigger point for an acceleration into $58.56.
A sustained move over $65.13 will signal the presence of buyers. If this move can create enough upside momentum then look for the rally to possibly extend into the pivot at $67.12, followed by a short-term downtrending Gann angle at $68.38. This angle is a potential trigger point for a spike into $70.01. This is the last potential resistance angle before the $71.63 main top.
This article was originally posted on FX Empire