Home » Technical Analysis » WTI Remains under Selling Pressure headed into Friday

WTI Remains under Selling Pressure headed into Friday

WTI  crude oil

The U.S. West Texas Intermediate (WTI) crude oil futures contract fell to a low price point at $67.70 per barrel during the overnight North American trade session. The U.S. oil contract has since recovered to trade near $68.60 per barrel so far on Friday.

Today, the global financial markets will be focusing on key labor numbers out of the United States. The labor numbers will cause U.S. dollar volatility which will affect the dollar denominated U.S. WTI crude oil futures contract, as well.

At 8:30 a.m. EST, the U.S. Labor Department will release their closely scrutinized monthly non-farm payroll (NFP) report. This jobs report will also include the monthly unemployment rate, July average hourly earnings and the monthly labor participation rate.

Median financial market forecasts are calling for the United States to have added 895,000 new jobs in July. Canada, which has large exposure to U.S. crude price levels, will also be releasing monthly labor numbers.

Halifax will publish monthly housing price index (HPI) numbers for the United Kingdom. Germany and Italy will publish monthly industrial production numbers.

Daily U.S. WTI Crude Oil Technical Analysis

Looking at the above daily MT 4 price chart, the U.S. WTI crude oil contract has been under selling pressure for the last three days. There is also a black crow candlesticks pattern forming. This could signal more selling pressure for the black gold.

The 14 day momentum indicator, MACD, is below the mid-line and the relative strength index (RSI) is looking bearish. The first layer of technical support lines up at $67.08. The 21 July low price point lines up at $66.33 per barrel. The next level of technical support comes into focus at the 20 July low of $64.99.

On the upside immediate technical resistance lines up at $69.50 per barrel. The next upside barrier is at the twenty (20) day simple moving average at $71.15. A daily close above the 20 day simple moving average should bring $72.15 into play.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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