• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 59 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days The United States produced more crude oil than any nation, at any time.
  • 12 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 5 hours How Far Have We Really Gotten With Alternative Energy
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Slowing Production May Hold Prices In Range

After reaching its highest level in three weeks and posting a higher close the week-ending June 12, August Crude Oil futures posted an inside move this week. Although the market is in a position to once again close higher for the week, the inability to take out last week’s high suggests yet more trader indecision.

The lack of upside momentum also suggests a possible shift in investor sentiment. Based on the short-term range of $64.12 to $56.88, it looks as if the next move will be determined by trader reaction to is 50% to 61.8% retracement zone at $60.50 to $61.35. Given the current set up on the weekly chart, a weekly close over $61.35 will be bullish and a weekly close under $60.50 will signal the presence of sellers.

For bullish traders, a sustained move over $61.35 could generate enough upside momentum to challenge the recent main top at $64.12. Taking out this top will signal a resumption of the uptrend. Two scenarios could take place if this occurs. 

(Click to enlarge)

The first scenario suggests that a breakout over $64.12 could lead to an eventual retracement into the major retracement zone at $72.75 to $78.42. The second scenario suggests a possible rally to $72.29 by the week-ending July 18.

A weekly close under $60.50 suggests a bearish scenario may be developing. If this leads to follow-through selling next week then look for sellers to go after the last swing bottom at $56.88. Taking out this bottom will change…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News