In this series, we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. Crude oil turned from long-term uptrend resistance last month with price plummeting more than 10% off the yearly highs. Today’s decline is challenging the monthly opening range lows with the price now approaching broader slope support. Here are the key targets & invalidation levels that matter on the Crude Oil (WTI) weekly chart.
CRUDE OIL WEEKLY PRICE CHART (WTI)
Notes: In last month’s Crude Oil Technical Perspective we highlighted a price reversal off confluence resistance at 75 on building momentum divergence while noting support targets at, “71.32 backed by the outside-weekly reversal close at 69.29– a break there would suggest a larger correction is underway targeting the sliding parallel (red) at ~66 and pitchfork support at 64.27– both levels of interest for possible exhaustion / long-entries IF reached.”
Price has now broken below parallel support (red) with downside weekly support targets unchanged at 66 and the June close-low/pitchfork support at 64.27. Resistance now back at 69.29 with bearish invalidation lowered to 71.33.
Bottom line: The risk remains weighted to the downside in Crude but the price is approaching levels of interest for support just lower. From a trading standpoint, I’d be reducing short-exposure heading into broader structural support – we’ll be on the lookout for possible exhaustion / long-entries on a dip lower into the aforementioned support zones. Intraday trading levels are largely unchanged but I’ll publish an updated Crude Oil scalp report once we get some further clarity on near-term price action.
CRUDE OIL TRADER SENTIMENT
