Crude Oil Price Update – $63.36 Major Support; $64.07 Trigger Point for Upside Breakout

U.S. West Texas Intermediate crude oil futures are trading higher on Monday in a volatile trade. The market rallied early in the session after Saudi Arabia’s oil minister said OPEC and its allies may continue their plan to reduce production, trim the supply excess and stabilize prices after the June deadline. Prices retreated from the intraday high on stock market weakness and lower demand for risky assets.

At 14:43 GMT, July WTI crude oil futures are trading $63.45, up $0.53 or +0.83%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out Friday’s high and closing price reversal top at $63.96.

Traders are trying to establish support on the bullish side of a major Fibonacci level at $63.36. Resistance is a minor Fibonacci level at $64.02.

Daily Technical Forecast

Based on the early price action and the last price at $63.45, the direction of the July WTI crude oil futures contract the rest of the session is likely to be determined by trader reaction to the major Fibonacci level at $63.36.

Bullish Scenario

A sustained move over $63.36 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into the resistance cluster at $63.96, $64.02 and $64.07. Since the main trend is down, look for sellers on the first test of this area.

Look for a potential acceleration to the upside if buyers take out $64.07.

Bearish Scenario

A sustained move under $63.36 will signal the presence of sellers. The first target is the uptrending Gann angle at $62.60. Look for a potential acceleration to the downside into the short-term pivot at $62.03 if the support angle fails.