Crude Oil Price Update – Bullish Bias Over $63.74, Bearish Bias Under $63.23

May West Texas Intermediate crude oil futures are trading slightly lower shortly after the regular session opening. Traders seem unfazed by the easing in US-China trade tension and the drop in crude stockpiles. The stronger U.S. Dollar may be pressuring prices, but at the same time, increased demand for risk may help to underpin the market.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $62.06 will signal a resumption of the downtrend. The next main bottom targets come in at $60.18 and $59.91.

The trend changes to up on a move through $65.42.

The price action is also being controlled by a number of retracement levels.

The main range is $57.60 to $66.55. Its retracement zone is $62.08 to $61.02. This zone is the primary downside target. On Wednesday, the upper or 50% level of its range stopped the selling at $62.06.

The intermediate range is $60.18 to $66.55. The market is currently straddling its retracement zone at $63.23 to $62.45. This zone could become support or resistance.

The short-term 50% levels at $63.74 and $64.31 are new resistance.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the crude oil market is likely to be determined by trader reaction to the 50% level at $63.23.

A sustained move over $63.23 will indicate the presence of buyers. This could lead to a retest of the next 50% level at $63.74. This price is the trigger point for an acceleration into $64.31.

A sustained move under $63.23 will signal the presence of sellers. This could trigger a steep move into a Fib level at $62.45. This is followed by a support cluster at $62.08 to $62.06.

Yesterday’s low at $62.06 is a potential trigger point for an acceleration to the downside with $61.02 the next likely downside target.