July WTI Crude Happy Near $58.50-.75 - Forex News by FX Leaders
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July WTI Crude Happy Near $58.50-.75

Posted Monday, May 27, 2019 by
Shain Vernier • 1 min read

Holiday trading volumes are evident across the futures markets and action is slow. At press time (11:15 AM EST), July WTI crude oil is showing about 185,000 contracts having changed hands. This represents about ⅓ of Friday’s handle, suggesting that many energy traders are on holiday.

Last week featured an epic drop in July WTI crude oil pricing. I covered the global oil situation in last Saturday’s weekend update. If you missed it, check it out here.

July WTI Crude Tightens Near $58.50-$58.75

For today, there really isn’t much going on in the energy markets. However, we do have a multi-session compression pattern setting up on the daily chart for July WTI crude oil futures.

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

With only a few hours to go until the CME’s early halt in observance of Memorial Day, July WTI is likely rangebound. Nonetheless, here are a few levels to watch going into the Tuesday Asia-Pacific and European sessions:

  • Resistance(1): 38% Current Wave, $59.86
  • Resistance(2): Psyche Level, $60.00
  • Support(1): Swing Low, $57.33

Overview: Much like the U.S. indices, the 38% Fibonacci retracement ($59.86) is going to be a key level for July WTI crude moving forward. Its proximity to $60.00 is an important technical occurrence and one that will determine the intermediate-term trend.

This week’s WTI market is going to depend on how price fares near the $59.86 to $60.00 zone. If the market establishes itself above this area, we may be looking at a late-May rally toward yearly highs; if not, it is possible that WTI has topped out for 2019.

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About the author

Shain Vernier // 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.
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