The buyback is on in WTI crude oil. Price has broken out to the bull for July WTI futures under heavy traded volume. With the weekly crude oil inventory cycle slated to start this afternoon, traders are buying everything in sight. At press time, July WTI crude is trading near the $68.25 handle.

Remember, the weekly API and EIA reports are scheduled to come in one day later than usual due to the holiday weekend. This afternoon marks the API release, with the EIA report hitting the wires Thursday.

WTI Crude Oil Technicals

The U.S. traditional pit open has brought an abundance of buyers to this market. Since 9:00 AM EST, crude has rallied almost $1.25. Today’s gains have price approaching a key Fibonacci level outlined in a Tuesday update.

Intraday time frames are showing an upward trend. Participation has spiked above Tuesday’s high ($67.35) and the $67.50 handle. Here are the levels to watch for the remainder of the trading day:

• Resistance(1): 38% Retracement of Current Wave, $68.51
• Resistance(2): Bollinger MP, $69.15
• Resistance(3): Daily SMA $70.17

Bottom Line: In a trading plan from yesterday, I broke down a sell from Fibonacci resistance. This plan is still valid. In the event that crude pushes higher, short scalps from each resistance level are acceptable. In this case, a profit target of 8-12 ticks is optimal, using a 1:1 risk vs reward management plan.

A strong intraday trend is present — if selling, be sure to have your stops down and leverage in check.