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Crude Oil Price Update – Found Support Inside $62.51 to $61.54 Short-Term Retracement Zone

By:
James Hyerczyk
Published: Apr 26, 2019, 16:12 UTC

Based on the early price action and the current price at $62.81, the direction of the June WTI crude oil futures contract into the close is likely to be determined by trader reaction to the short-term 50% level at $62.51.

Crude Oil

U.S. West Texas Intermediate crude oil futures are down over 3 percent on Friday after U.S. President Donald Trump said he told OPEC to take action to temper fuel costs.

“The gasoline prices are coming down. I called up OPEC. I said, ‘You’ve got to bring them down. You’ve got to bring them down, and gasoline’s coming down,” Trump told reporters.

The huge sell-off erased all of the week’s gains that were fueled after the Trump administration said it will not extend waivers that allow several countries to continue buying Iranian crude despite U.S. sanctions on the Islamic Republic, putting the market to post a potentially bearish closing price reversal top.

The Trump administration also said it has secured commitments from Saudi Arabia, UAE and other allies to fill any gap left by the anticipated drop in Iranian supplies.

At 16:02 GMT, June WTI crude oil futures are trading $62.81, down $2.40 or -3.70%.

WTI Crude Oil
Daily June WTI Crude Oil

Daily Technical Analysis

The main trend is down according to the daily swing chart. It turned down earlier in the session when sellers took out the previous main bottom at $63.15. The new main top is $66.60.

The short-term range is $58.41 to $66.60. The market is currently testing its 50% to 61.8% retracement zone at $62.51 to $61.54. This zone represents value so buyers could reappear following a test of this zone.

The major retracement zone is $63.48 to $59.73. This zone is controlling the longer-term direction of WTI crude oil. The market is currently trading inside this zone.

Daily Technical Forecast

Based on the early price action and the current price at $62.81, the direction of the June WTI crude oil futures contract into the close is likely to be determined by trader reaction to the short-term 50% level at $62.51.

Bullish Scenario

A sustained move over $62.51 will indicate the return of buyers. If this move creates enough upside momentum then look for a potential rally into a price cluster at $63.41, $63.48 and $63.60. Sellers could come in on the first test of $63.41 to $63.60. However, overcoming $63.60 could trigger an acceleration to the upside with a downtrending Gann angle at $65.10 the next upside target.

Bearish Scenario

Taking out $62.51 and sustaining the move will signal the presence of sellers. A drive through the intraday low at $62.28 will indicate the selling is getting stronger. This could trigger an acceleration into the short-term Fibonacci level at $61.54.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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