CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
✖

Crude oil may have resume bearish trend

By :   Global author , Financial Analyst
July 31, 2018 1:54 PM

On Monday, both oil contracts started the new week how they ended the last one: higher. But the bullish momentum appears to have faded today, boosting the prospects of a possible resumption of the downward trend for oil prices.

Despite last week’s bullish close, WTI is set to end lower on the month. And with prices already turning lower on the week, we are not convinced that oil has bottomed out yet. Indeed, both oil contracts remain (comfortably) below their respective key pivotal levels: Brent holding below $75.90 and WTI below $71.60 prior swing points.

Thus, last week’s bounce may well have been a counter move against what could be a stronger downward trend.

If the above statement is indeed the case and the fact we have seen signs of bulls getting trapped above last week’s ranges today then this could be an indication that prices will now go on to drop towards the next big pool of liquidity which would be below last week’s low. However, if prices recover and go back above last week’s highs then one has to seriously consider the bullish scenario.

Taking a closer look at the daily chart of WTI we can see that the re-test of the broken bullish trend has offered strong resistance around the $70 handle today. The selling pressure has abated for the time being around short-term support at $68.30. But if this level gives way later on today or tomorrow then we could see the selling force gather momentum, potentially pushing WTI towards the next levels of support at $67.00 or $66.20. An even stronger support level is further lower at around $63.80, where the previous swing low meets the 200-day moving average. But it remains to be seen whether oil prices will drop that far.

From a bullish point of view, meanwhile, any move back above today’s high and resistance in the $70.00-$70.20 area would be a positive outcome in the short-term outlook. If this were to happen then WTI may go on to probe liquidity above the most recent high at $71.60 before deciding on its next directional move.


Source: eSignal and FOREX.com.

StoneX Financial Ltd (trading as "FOREX.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, FOREX.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date.


This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it. No opinion given in this material constitutes a recommendation by FOREX.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although FOREX.com is not specifically prevented from dealing before providing this material, FOREX.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. For further details see our full non-independent research disclaimer and quarterly summary.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Financial Ltd. StoneX Financial Ltd is a company incorporated in England and Wales with UK Companies House number 05616586 and with its registered office at 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is authorised and regulated by the Financial Conduct Authority in the UK, with FCA Register Number: 446717.

FOREX.com is a trademark of StoneX Financial Ltd. This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy. FOREX.com products and services are not intended for Belgium residents.

© FOREX.COM 2026