Talking Points
- Crude Oil Prices Test Support Near $40.47
- A Move Below the 200 Day SMA Suggests a Downtrend is in Development
- Access Our Free Q3 Oil Outlook HERE
The price of WTI Crude Oil (CFD:USOil) has continued its slide, and closed July trading near monthly lows at $40.55. Now Crude Oil prices are moving on its 200 day SMA (Simple Moving Average) at $40.47. If prices remain supported here, it would suggest that Crude Oils Summer decline has been a retracement in a developing uptrend. Alternatively if Crude Oil prices drop below the SMA, it would suggest that prices are trending lower.
Crude Oil Prices, Daily Chart
(Created by Walker England)
Traders tracking the price of Crude Oil intraday, should note that the commodity is already declining after first testing resistance at $41.71. This value is represented in the graph below as the R3 pivot. A retracement from this value has already dropped Crude Oil through today’s point of range support, which is found at the S3 pivot at a price of $41.11. Bearish breakouts for today begin under the S4 pivot at $40.81. A breakout below this value would open Crude Oil prices to then test the 200 SMA mentioned above at $40.47
In the event of a bullish reversal, Crude Oil prices should bounce back inside of today’s pivot range which begins at $41.11. Technically this would suggest that bearish momentum has at least temporarily subsided, allowing price to test values of resistance. It should be noted that today’s R4 pivot is found at $42.01. A move through this value would be significant as it would represent the first bullish breakout for Crude Oil in the last eight trading sessions.
WTI Crude Oil Price 30 Minute with Pivots
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