After a shaky start, the US West Texas Intermediate Crude Oil market rose on Monday thanks to a weaker dollar and relatively low pricing. Bargain seekers are attempting to break a seven-day losing skid, as lingering concerns over the global spread of the Delta coronavirus type kept mood cautious. October WTI Crude Oil futures were trading at $63.27 at 06:06 GMT, up $1.13 or 1.82 percent. This is up from a low of $61.74 earlier this year.
According to the daily swing chart, the major trend is down. The downtrend will be reaffirmed if a trade is made through the intraday low of $61.74. The major trend will turn to up if the price breaks through $69.39. Although this is highly unlikely, the market began today’s session within the window of time for a possible bullish closing price reversal bottom chart pattern, thanks to the 7-10 Day Rule. $56.24 to $74.77 is the major range.
Its retracement zone, which runs from $63.32 to $65.51, is in charge of the market’s near-term direction, making it possible resistance. $69.39 to $61.74 is the minor range. Another potential upside objective is the $65.57 to $66.47 retracement zone. Because the overall trend is down, sellers are likely to return if this region is tested.
Trader reaction to $62.14 is expected to determine the direction of the October WTI Crude Oil market on Monday. The presence of buyers will be indicated by a prolonged advance above $62.14. The primary Fibonacci level at $63.32 is the initial upside objective. On the first test of this level, look for sellers. Surpassing $63.32 will imply that the short-covering is becoming more powerful. Look for the rally to extend into the primary 50 percent barrier at $65.51 if this move generates adequate upside momentum. The presence of selling will be signalled by a prolonged move below $62.14. It’s possible that the intraday low of $61.74 will be retested.