Crude Oil Price Update – Chart Pattern Suggests Bullish Tone Over $64.00, Bearish Tone Under $63.40

April West Texas Intermediate crude oil futures are trading flat-to-lower on Tuesday in reaction to a choppy, two-sided trade in the stock market and ahead of this week’s inventories reports which are expected to show a rise in U.S. supply.

The American Petroleum Institute releases its weekly figures on U.S. crude inventories later on Tuesday. Stocks are forecast to have risen by 2.7 million barrels the week-ended February 23.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $64.24 will signal a resumption of the uptrend. If the buying is strong enough then we could see a surge into the February 2 main top at $66.00.

A trade through $63.06 will make $64.24 a new minor top. The main trend won’t actually change to down until $60.75 is taken out.

The main range is $66.00 to $57.90. Its retracement zone is $62.91 to $61.95. This zone is new support. Holding above this zone is helping to give the market an upside bias.

Daily Technical Forecast

Based on the early trade and inside move, traders are being indecisive ahead of the API report, but may be preparing for renewed volatility.

The market is currently testing a pair of Gann angles at $64.00 and $63.75. Trader reaction to these angles will set the tone of the session into the close.

A sustained move over $64.00 will indicate the presence of buyers. This could drive the market into $64.24. Taking out this level will indicate the buying is getting stronger with the next target angle dropping in at $65.00. This is the last potential resistance angle before the $66.00 main top.

A sustained move under $63.75 will signal the presence of sellers. The next support angle comes in at $63.40. The daily chart indicates there is plenty of room to the downside under this angle with the next two major targets $62.91 and $62.25.

Into the close, look for an upside bias to develop on a sustained move over $64.00 and for a downside bias on a sustained move under $63.40.