Key Levels For June WTI Crude Oil

Posted Thursday, May 9, 2019 by
Shain Vernier • 1 min read

Rotation is the rule for today’s action in the June WTI crude oil futures market. Following a failed bearish breakout under the $61.00 handle, price has rotated back to the $61.50 – $62.00 zone. This is a key area and one that serves as the basis for a three-day pennant formation.

So, is WTI finally ready to move? Let’s dig into the technicals and see if we can determine a direction for this market.

The Pennant Holds In June WTI Crude Oil Futures

Following the extremely negative EIA Crude Oil Stocks report from Wednesday, many were inclined to believe WTI was ready to break out to the bull. This has not been the case, as WTI sold off before rejecting the $61.00 handle.

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

Here are the key levels to watch ahead of Friday’s closing bell:

  • Resistance(1): 38% Current Wave Retracement, $62.55
  • Support(1): Swing Low, $60.04

Overview: To be honest, I was looking for more of a move below or above Wednesday’s extremes for June WTI during the Thursday session. Only a 15 tick bearish washout occurred before the market reversed. At this point, it looks like energy bulls have stepped in and are going long WTI to close the week.

Currently, it appears that the $60.00 psychological level is set up to be an intermediate-term low. However, this area remains vulnerable until price rallies above the 38% Current Wave Retracement ($62.55). Unless we see a sustained bull run above $62.50, the daily downtrend is best respected and a short-term bearish bias maintained.

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