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.

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.