Crude Oil Set for a Wide Trading Range

July crude oil futures at the New York Mercantile Exchange on Monday poked to a fresh six-week low of $68.17 a barrel. However, prices then quickly rebounded to close solidly higher and near the session high. Good follow-through buying interest was also seen Tuesday morning. Now, Monday’s low of $68.17 a barrel is strong technical support. A close below that level would produce some near-term chart damage and would suggest more sideways to lower trading in the near term.

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On the upside, solid near-term technical resistance for July crude oil is located at $72.00 a barrel and then at $73.00. A close above major psychological resistance at $75.00 a barrel would open the door to a challenge of the May 3 contract high of $76.40, or above. Technical odds suggest that in the coming weeks nearby crude oil futures will trade in a wide range between the above technical parameters of $68.00 to $75.00 a barrel.
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