EIA reports

WTI Crude Oil Rallies,Trades Above $70.00

Posted Monday, July 30, 2018 by
Shain Vernier • 1 min read

WTI crude oil is on the bull, with price rallying above the $70.00 level. Buyers have come out of the woodwork since Sunday’s electronic open, bidding September WTI futures higher by more than a $1.00 per barrel. The recent strength in WTI crude has been significant. It appears that the intermediate-term correction of early July is over and price is poised to test yearly highs.

From a seasonal perspective, crude oil is in primetime for buyers. However, the Summer months are soon to pass. With inventories expected to build and demand to drop, one is inclined to believe that the top of this market for 2018 is very nearly in.

WTI Crude Oil Technicals

Last Friday’s release of the Baker-Hughes Rig Count gave traders an abundance of food for thought. As expected, the count reported a gain of three North American rigs to 861. With production ramping up, are we in line for a build in inventories this week?

September WTI Crude Oil Futures (CL), Daily Chart
September WTI Crude Oil Futures (CL), Daily Chart

Here are two support and resistance levels to keep an eye on for the remainder of the session:

  • Resistance(1): Daily SMA, $70.20
  • Support(1): Bollinger MP, $68.90

Overview: The daily chart is shaping up bullish. Price has slammed into topside resistance at the Daily SMA and is positioned to test this level again as the session wears on. In the event we see continued consolidation between the Daily SMA and Bollinger MP, a mid-week breakout on the inventories reports is probable.

Yearly highs have been established at $72.98 for September WTI futures. If we see buyers step in above $70.50, then this level will be tested in short order.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier is our US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
eToro announces a significant cut in spreads on cryptoassets to increase awareness of the potential of crypto and blockchain more broadly
SPONSORED
Comments

Leave a Reply

avatar
  Subscribe  
Notify of
SPONSOR BROKER