Crude Oil Price Update – Close Over $65.81 Forms Weekly Closing Price Reversal Bottom

U.S. West Texas Intermediate crude oil is trading lower on Friday at the mid-session. The selling is being driven by a bearish crude oil price forecast from J.P. Morgan. Concerns about surging U.S. production and falling demand in China.

At 1630 GMT, July WTI Crude Oil is trading $65.51, down $0.44 or -0.67%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $64.22 will signal a resumption of the downtrend.

Momentum is trending higher. It turned up following the closing price reversal bottom on Tuesday and the subsequent follow-through to the upside that confirmed the chart pattern.

The minor trend is also down. It will turn up on a trade through the last swing top at $68.67.

The best support today is a pair of long-term 50% levels at $64.92 and $64.77.

Resistance is a long-term Fibonacci level at $66.00 and a short-term 50% level at $66.45.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the July WTI Crude Oil market into the close will be determined by trader reaction to the Fib level at $66.00.

A sustained move under $66.00 will signal the presence of sellers. This could drive the market into $64.92 and $64.77. If $64.77 fails as support then look for the selling to extend into $64.22.

Overcoming $66.00 late in the session will signal the presence of buyers. This could drive the market into $66.45. The market will strengthen over this price with $67.32 the next target.

Traders should also pay attention to $65.81. This is last week’s close. Finishing over this price will form a weekly closing price reversal bottom.