WTI crude oil futures for October settle at $42.34

Technical Analysis

Down $0.48 or 1.12%

The price of WTI crude oil futures settle that $42.34. The last 7 weeks have settle between $42.02 and $40.27. 

  • Week ending Fri 3 July: $40.65 
  • Week ending Fri 10 July: $40.55
  • Week ending Fri 17 July: $40.59
  • Week ending Fri 24 July: $41.29
  • Week ending Fri 31 July: $40.27
  • Week ending Fri7 August: $41.27
  • Week ending Fri 14 August: $42.02

The settle price this week is the 3rd week in a row that the price has settled higher. Moreover the last 2 weeks have settle at levels outside of the range going back to July 3rd.  

The price also closed above its 50% retracement of the 2020 trading range for the October contract. That level comes in at $42.

That’s the good/bullish news. The not so bullish technical news is that the contract price remains below its 200 day moving average at $43.41.

Today the low price reached down to $41.46 and looked like it would close below the 50% retracement level. However, Baker Hughes recount showed a surprise 11 rig gain in oil rigs. That helped to push the price back above the $42 level into the close. The high price for the day reached $42.96.

With the price is still confined in a narrow sideways trading range, traders will be watching for a break of the 200 day moving average above at $43.41 or the 50 day moving average below at $40.96. At the end of July there was one day when the price took a quick peek below the 50 day moving average but quickly turned around.  The price has not traded above its 200 day moving average since February 20.

Non-trend transitions to trend.  At some point oil well get a boost to the upside and get above the 200 day moving average, or fall below the 50 day moving average and keep the sellers/bears more in control. Maybe next week?

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