Yahoo Finance Crude Oil Price Update – $62.32 Trigger Point for Downside Acceleration
U.S. West Texas Intermediate crude oil futures are trading lower early Tuesday on concerns that an economic slowdown could lead to lower demand. The start of the sanctions against Iran seems to have gone off without a hitch although the announcement of exemptions by the U.S. for certain countries or “territories” continued to weigh on prices.
At 0419 GMT, December WTI crude oil is trading $62.96, down $0.14 or -0.22%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The market isn’t close to changing the main trend to up, but it is vulnerable to a closing price reversal bottom, which could lead to a 2 to 3 day short-covering rally.
The next downside target is a main bottom at $62.32. This level is critical support because the next target comes in at $59.70.
The main retracement zone is $65.45 to $62.79. The market is currently straddling the lower or Fibonacci level at $62.79.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the December WTI crude oil futures contract on Tuesday is likely to be determined by trader reaction to the Fibonacci level at $62.79.
A sustained move over $62.79 will indicate the presence of some light buying. This may not be enough to change the trend, but it could stop the selling at least temporarily and help stabilize prices. The nearest upside targets at this time are the 200-day moving average at $65.39 and the main 50% level at $65.45.
A sustained move under $62.79 will signal the presence of sellers. The next target is the June 18 bottom at $62.32. Taking out this level with conviction could trigger an acceleration to the downside with the next target coming in at $59.70.
Watch the price action and read the order flow at $62.79 all session. Trader reaction to this level will tell us if the buyers or sellers are in control today.
This article was originally posted on FX Empire
