The popular U.S. West Texas Intermediate (WTI) crude oil futures contract has been under selling press since the beginning of a descending trend channel from the high price of $76.40 per barrel set on 6 July.
Heading into Tuesday, the WTI crude oil contract has broken below $69 per barrel after seeing two days of upside strength. Part of the weakness is due to a massive hurricane which just hit Louisiana and closed refineries in the Gulf of Mexico.
Today’s economic calendar in the United States as well as the euro area is quite busy. Affecting crude oil prices, the U.S. will release weekly oil inventory numbers.
The Confidence Board (CB) will publish their monthly consumer confidence index and the Chicago purchasing managers’ index (PMI) will be published. The world’s largest economy is also publishing their monthly house price index.
Germany will publish monthly labor data. German monthly import numbers are also on the schedule. France is publishing monthly consumer price index (CPI) data as well as their quarterly gross domestic product (GDP).
The Eurozone is also publishing their monthly consumer price index. The United Kingdom is releasing monthly mortgage approvals as well as monthly mortgage lending numbers.
Daily WTI Crude Oil Technical Analysis
Looking at the above WTI crude oil contract on the above daily MT 4 price chart, the 14 day MACD indicator is near oversold. U.S. crude is also trading below the 50 day simple moving average which lines up at $70.25. This could open the door for a challenge of $67.60 per barrel.
The next layer of technical support lines up at $66.70 per barrel with the 24 August low price point of $65.35 then coming into play.
On the upside, a daily close above the 4 August high price point $70.50 opens the door to challenge the upside barrier at $71.20 per barrel. The 2 August high price point at $73.55 then comes into focus