Crude Oil Price Update – In Position to Post Dramatic Closing Price Reversal Bottom

U.S. West Texas Intermediate crude oil futures are trading higher late in the session on Monday, recovering from early session weakness that was fueled by a pair of tweet from President Trump, announcing new tariffs on China. Prices fell early on speculation that China would cancel its upcoming trip to Washington to discuss a trade deal.

At 19:15 GMT, June WTI crude oil futures are trading $62.64, up $0.70 or +1.15%.

The market began to turn around shortly after piercing its 200-day moving average. Buyers quickly came in to buy crude oil at bargain prices. The market accelerated to the upside throughout the session on reports that China’s trade delegation will indeed attend talks in Washington.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but today’s potentially bullish closing price reversal bottom indicates momentum may be getting ready to shift to the upside.

A trade through $60.04 will signal a resumption of the downtrend. The main trend will change to up on a move through $66.60.

The minor trend is also down. A move through $64.75 will change the minor trend to up. This will officially shift momentum to the upside.

The main range is $55.31 to $66.60. Its retracement zone at $60.96 to $59.62 provided support early Monday when the market reached a low at $60.04.

The intermediate range is $58.41 to $66.60. The market is currently straddling its retracement zone at $62.51 to $61.54.

The short-term range is $66.60 to $60.04. Its retracement zone at $63.32 to $64.09 is the primary upside target. This zone is critical to the chart pattern. Since the main trend is down, sellers are likely to come in on a test of this zone. They are going to try to produce a secondary lower top.

Daily Swing Chart Technical Forecast

Based on the late session price action, the direction of the June WTI crude oil futures contract into the close and early Tuesday will be determined by trader reaction to the 50% level at $62.51.

Bullish Scenario

A sustained move over $62.51 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for the rally to continue into a 50% level at $63.32 then the Fibonacci level at $64.09. Overtaking the Fib level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under $62.51 late in the session will signal the presence of sellers. This could trigger a break into $61.54 to $60.96.