It appears that no matter what the market fundamentals say, WTI crude oil is determined to test the $70.00 level. Bulls are currently backing up this notion with enthusiasm, driving June WTI crude oil futures to the vicinity of $69.00. If you remember from updates late last week, $69.00 is the upper bound of our defined compression zone.

One of the driving forces behind the rally is seasonality. The North American late Spring/early Summer months are coming on. Historically, we see some of the highest WTI prices of the year around the Memorial Day holiday (May 28). The oil markets of 2018 are following this trend to a tee.

WTI Crude Oil Technicals

Since the bear run on Tuesday, WTI crude has continued to grind higher. While price action has been choppy on the intraday charts, dips are consistently catching bids.

Here are the key technical levels to watch in WTI crude oil:

• Resistance(1): Top of Compression Zone, $69.00
• Resistance(2): Key Psyche Level, $70.00
• Support(1): Bollinger MP, $66.81
• Support(2): Daily SMA and 38% Retracement, $66.48

Overview: From a technical standpoint, this market remains definitively bullish. Price has yet to test the 38% retracement of the current uptrend, preserving this bias. Strong support is set up at the $66.50 handle, but this level is unlikely to come into play in the near future. For now, it will be interesting to see if trade can be sustained above $69.00.

It is the buying season for WTI crude oil. Fundamentals are being ignored and institutional money is diving in with both feet. In the event that we see a significant pullback, a long entry from support will be a great trade.