After showing some early-session weakness, August WTI crude oil futures are rallying toward $75.00. It appears that buyers are lurking in the shadows, ready to pounce on any dip in price. The result has been a massive $10.00 two-week gain in value.

The surprise draws on inventory from last week have sent this market higher. OPEC, gains by the USD, and a spike in North American demand are also being given credit for the late-June rally. However, with such a big psychological level present at $75.00, one has to wonder if WTI crude is posting yearly highs for 2018.

WTI Crude Oil Technicals

The daily chart is not a whole lot of help in identifying valid support and resistance levels. Price is well above downside support and there is no macro level of topside resistance to watch. Perhaps the only real area of interest is the big round number of $75.00.

Bottom Line: Without a doubt, $75.00 will attract high levels of participation from both buyers and sellers. The action is likely to produce optimal scalping conditions.

In the event that we see a test of the $75.00 area, shorts from $74.94 will give us an opportunity to grab a few dollars from the action. Using a tight stop loss of 12 ticks, this trade yields 8-12 ticks on a bounce off of the $75.00 psyche level.

Remember, the goal of a scalp is to realize quick and positive price action. If price goes a positive 8-12 ticks quickly, rack profits and move on to the next trade!