WTI crude oil futures settle at $40.27

Technical Analysis

Up $0.35 or 0.88%

The price of WTI crude oil futures are settling the day at $40.27. That is up $0.35 or 0.88%. The high for the day reached $40.55. The low extended to $39.66.

The last 5 weeks has seen the price close at:

  • July 3 $40.65
  • July 10, $40.55
  • July 17, $40.59
  • July 24, $41.29
  • July 31,, $40.27

Those are not big moves when you consider the fall from the February high to the April low took the price down 59.69% (from $54.59 to $21.99 or $32.06), nor the 89.8% rise from the April low to the June high (from $21.99 to $41.74 or $19.75). 

The month of July range went from a high of $42.51 to $38.72 or only $3.79. Ho-hum.  ZZZZZZZZ.

Trends lead to non-trends and July was a non-trend for the price of oil.

Technically, the 50% retracement of the 2020 trading range for the September contract comes in at $41.71. The price moved above that level on a few occasions over the last few weeks but could not sustain momentum above that level.

If the price breaks to the upsid getting above the 200 day moving average the next key target comes against the 200 day moving average of $44.07 (green line in the chart above).

Should momentum to the downside continue and the low for the month taken out at $38.72, traders will be looking toward the 100 day moving average down at $34.60.

Just as trends lead to non-trends, non-trends lead to trends. Look for August to show a little more then $3.79 as the trading range.

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