Crude Oil Price Update – Inside Move Indicates Investor Indecision, Impending Volatility

February West Texas intermediate crude oil is trading lower but inside Friday’s range. The chart pattern suggests investor indecision and impending volatility. Investors are trying to figure out how to play the market due to increasing concerns over rising U.S. production.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $62.21 will signal a resumption of the uptrend. The market is also up 15 days from its last swing bottom, putting it in the window of time for a potentially bearish closing price reversal top.

Friday’s price action made $62.21 a new minor top.

The main range is $56.11 to $62.21. Its retracement zone at $59.16 to $58.44 is the primary downside target. Inside the zone are former tops at $58.99, $58.90 and $58.60. These are all potential downside targets.

Daily Technical Forecast

Based on the early price action, trader reaction to Friday’s range will determine the direction of the market. In other words, potentially bullish over $62.04 and potentially bearish under $61.09.

More conservative traders may have pegged the breakout range as $62.21 to $61.09.

A sustained move over $62.21 will signal the presence of buyers. The nearest resistance is a 50% level at $64.02.

A sustained move under $61.09 will indicate the presence of sellers. The daily chart opens up under this price level with the first target angle coming in at $59.86, followed by the 50% level at $59.16.