We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • Another failure Boris!
  • RT @vtchakarova: British PM Johnson says won't negotiate further Brexit delay with EU. The EU also made it very clear (see Juncker’s recent…
  • How will the Trump impeachment process affect #forex and US stocks? Find out from Rupert Osborne, @IG_US, only on Trading Global Markets #podcast. Missed the episode? Read up here: https://t.co/1Bgo0Fl5CV https://t.co/BRNvqHVjYY
  • RT @bbclaurak: I'm told that's the advice from Cabinet Secretary - legal default is still leaving at end of this month, because they can't…
  • RT @bbclaurak: No 10 claims chances of no deal go up if Letwin passes - 'the govt will step up no deal preparations immediately as the risk…
  • RT @NSoames: I shall vote against The Letwin amendment and for the Deal
  • RT @Robert___Harris: On the eve of tomorrow’s rushed Commons vote I keep thinking of the journalist Phillip Knightley’s memo to the executi…
  • The $AUD has wilted as markets price in further rate cuts even as the OCR hovers at just 1%. Those cuts may come, but labor market strength may have to wane first. Get your market update from @DavidCottleFX here: https://t.co/h1Uvm8ogXh https://t.co/M1IP0jqh41
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/ZCT4pwc6nv
  • Greed has proven to be a hindrance more than assistance for traders. How does greed impact your trading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/C4vrTm69sE
Crude Oil  Price Outlook: Oil Grind Continues at Confluent Resistance

Crude Oil Price Outlook: Oil Grind Continues at Confluent Resistance

2019-07-02 12:30:00
James Stanley, Currency Strategist
Share:

Crude Oil Price Outlook Talking Points

Crude Oil Prices Grind at Confluent Resistance

The week started with strength in crude oil prices as a bullish gap showed after open with buyers continuing to push beyond the psychological level of 60. But that move could not last and buying pressure soon dried up, allowing for price action to fall back below the confluent zone of resistance that’s been in-play for the past week. This area comes in around the 60-handle, with an assist from the Fibonacci level at 59.64 (50% of the October-December 2018 trend) and a bearish trend-line as taken from April and late-May swing-highs.

WTI Crude Oil Daily Price Chart

wti crude oil daily price chart

Chart prepared by James Stanley

The late-portion of last week saw a quick flicker of weakness as bears posed a push down to key support. The support zone identified in the previous technical write-up on crude oil, spanning from 57.26-57.85, helped to arrest that decline last week with support holding into the close. That led-in to this week’s bullish gap, but given the recent inflection, this could be an area of interest for near-term support.

WTI Crude Oil Hourly Price Chart

wti crude oil hourly price chart

Chart prepared by James Stanley

WTI Crude Oil Strategy

As looked at last week, given a hold of this key area on the chart, and the attraction could remain around short-side swing strategies in crude oil. The past two weeks have produced a backdrop seemingly conducive to bullish themes, marked by a dovish pivot at the Fed, a flare of geopolitical tension between Iran and the US and the extension of production cuts out of OPEC. Collectively, these factors point to continued topside, but that simply has yet to show given price action’s continued grind at this key area of resistance.

For short-side strategies, that zone of support looked at above, the same that came into play on Friday of last week, could function as initial targets for bearish approaches. Beyond that, a zone of prior resistance has yet to be tested for support since prices broke-higher two weeks ago, and that runs around the 55-level, with help from Fibonacci levels at 54.42 and 55.57.

WTI Crude Oil Eight-Hour Price Chart

wti crude oil eight hour price chart

Chart prepared by James Stanley

WTI Crude Oil – Bullish Potential

Given the backdrop, bullish prospects could potentially show, particularly if buyers are able to push through the current area of confluent resistance. For this approach, traders would likely want to see some element of confirmation given the lack of topside response to the current set of drivers, and a Fibonacci level nested at 60.77 can be of help. If buyers are able to break through the current zone of resistance, secondary resistance could be sought out at 60.77, after which higher-low support potential could be re-assigned to the current zone of resistance that runs from 59.64-60.00. Topside continuation strategies could then look at targets around the confluent zone that rests around 62.84-62.89.

WTI Crude Oil Two-Hour Price Chart

wti crude oil two hour price chart

Chart prepared by James Stanley

To read more:

Are you looking for longer-term analysis on the U.S. Dollar? Our DailyFX Forecasts have a section for each major currency, and we also offer a plethora of resources on Gold or USD-pairs such as EUR/USD, GBP/USD, USD/JPY, AUD/USD. Traders can also stay up with near-term positioning via our IG Client Sentiment Indicator.

Forex Trading Resources

DailyFX offers an abundance of tools, indicators and resources to help traders. For those looking for trading ideas, our IG Client Sentiment shows the positioning of retail traders with actual live trades and positions. Our trading guides bring our DailyFX Quarterly Forecasts and our Top Trading Opportunities; and our real-time news feed has intra-day interactions from the DailyFX team. And if you’re looking for real-time analysis, our DailyFX Webinars offer numerous sessions each week in which you can see how and why we’re looking at what we’re looking at.

If you’re looking for educational information, our New to FX guide is there to help new(er) traders while our Traits of Successful Traders research is built to help sharpen the skill set by focusing on risk and trade management.

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.