• 7 minutes Get First Access To The Oilprice App!
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 17 minutes Renewables in US Set for Fast Growth
  • 4 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 22 mins Socialists want to exorcise the O&G demon by 2030
  • 6 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 19 hours Cheermongering about O&G in 2019
  • 1 day Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 1 hour Russian Message: Oil Price War With U.S. Would Be Too Costly
  • 1 day North Sea Rocks Could Store Months Of Renewable Energy
  • 2 hours Oil CEOs See Market Rebalancing as Outlook Blurred by China Risk
  • 11 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 2 days Is Natural Gas Renewable? I say yes it is.
  • 24 hours Oceans "Under Fire" Of Plastic Trash
  • 37 mins WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 2 days Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
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…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News