Crude Oil Price Update – WTI Minor Trend Changes to Up on Trade Through $99.00

U.S. West Texas Intermediate crude oil futures are trading higher late in the session on Wednesday, helped by a government report showing a drop in inventories, and the Russian cuts to gas flows in Europe. Perhaps putting a lid on the rally is weaker demand and a U.S. Federal Reserve interest rate hike.

At 19:33 GMT, September WTI crude oil futures are trading $98.21, up $3.23 or +3.40%. The United States Oil Fund ETF (USO) is at $77.88, up $2.72 or +3.62%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $100.99 will change the main trend to up. A move through $88.23 will signal a resumption of the downtrend.

The minor trend is also down. A trade through $99.00 will change the minor trend to up. This will shift momentum. A trade through the minor bottom at $93.01 will reaffirm the downtrend.

On the downside, the support is a minor 50% level at $97.00, followed by a minor retracement zone at $94.61 to $93.10.

On the upside, the nearest resistance is a minor pivot at $99.69, followed by a short-term retracement zone at $103.16 to $106.68.

Daily Swing Chart Technical Forecast

Trader reaction to the minor pivot at $97.00 is likely to determine the direction of the September WTI crude oil market into the close on Wednesday.

Bullish Scenario

A sustained move over $97.00 will indicate the presence of buyers. Taking out the minor top at $99.00 will shift momentum to the upside with the next target a minor pivot at $99.69, followed by a pair of main tops at $100.99 and $102.00.

Bearish Scenario

A sustained move under $97.00 will signal the presence of sellers. This could trigger a late session break into a minor retracement zone at $94.61 to $93.10, followed by a minor bottom at $93.01.

A trade through $93.01 could trigger an acceleration into the long-term 50% level at $89.54. This is the last potential support before the $88.23 main bottom.