July Brent crude oil futures are trading sharply lower early Monday after gapping lower on both the daily and weekly charts. The big development is that it also moved below the 50-day moving average at $103.20, putting that level into resistance.
The market is currently testing an intermediate retracement zone at $100.65 to $97.21. Buyers could still come in on this break because the market is holding the main bottom at $96.10. If this fails, the main trend will turn down and traders will shift into sell the rally mode.
Watch the price action closely around $96.10 because this remains the trigger point for a downside acceleration with the next major target zone at $89.06 to $81.89.
What Traders Are Watching
Negotiations, Iran headlines and the condition of the Strait of Hormuz remain the unresolved drivers moving this market right now. The market has shifted from pricing panic to pricing progress and that changes the tone immediately. A continuation of positive headlines keeps pressure on crude. A breakdown in negotiations brings supply fears back quickly.
The technical picture now puts July WTI crude oil futures near a decision point around $91.09 and $91.17. That area is where buyers and sellers fight for control this week. The level I am watching is $91.09. That is where the trade starts changing. Everything else comes after that.
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