Crude Oil Price Update – Testing Retracement Zone; Strengthens Over $63.47, Weakens Under $62.29
U.S. West Texas Intermediate crude oil futures are edging higher on Thursday after hitting their highest level since March 18. The move represented a limited follow-through following yesterday’s move than 5% surge.
Several catalysts are supporting the market at this time including increased demand forecasts from the International Energy Agency (IEA) and OPEC, a bigger than expected drop in U.S. crude stockpiles and a weaker U.S. Dollar.
At 08:12 GMT, June WTI crude oil futures are trading $62.96, down $0.26 or -0.41%. This is down from a high of $63.55.
The IEA’s monthly report said global oil demand and supply are set to be rebalanced in the second half of the year after the COVID-19 pandemic destroyed demand in 2020. Meanwhile, OPEC expects demand to rise by 70,000 bpd from last month’s forecast and global demand is likely to rise by 5.95 million bpd in 2021.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, however, momentum has shifted to the upside. The main trend will change to up on a trade through $66.15. A move through $57.29 will signal a resumption of the downtrend.
The minor trend is up. This is controlling the momentum. The minor trend changes to down on a move through $57.68.
The short-term range is $67.29 to $57.29. The WTI crude oil market is currently testing its retracement zone at $62.29 to $63.47.
On the downside, minor support is a pair of 50% levels at $61.72 and $60.42.
The main range is $51.04 to $67.29. Its retracement zone at $59.17 to $57.25 is support. It’s also controlling the near-term direction of the market.
Daily Swing Chart Technical Forecast
The direction of the June WTI crude oil market on Thursday is likely to be determined by trader reaction to the short-term Fibonacci level at $63.47.
Bullish Scenario
A sustained move over $63.47 will indicate the presence of buyers. Taking out the intraday high at $63.55 will indicate the buying is getting stronger. This could trigger the start of an acceleration to the upside. The daily chart indicates there is plenty of room to the upside with potential targets a pair of main tops at $66.15 and $67.29.
Bearish Scenario
A sustained move under $63.47 will signal the presence of sellers. This could trigger a quick break into a pair of 50% levels at $62.29 and $61.72. Taking out the latter could extend the selling into the minor 50% level at $60.42.
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This article was originally posted on FX Empire
