Crude Oil Price Update – New Higher Swing Bottom Formed at $63.67

March West Texas Intermediate crude oil futures settled higher on Thursday and in a position to challenge last week’s three-year high at $66.66.

Daily Swing Chart Analysis

The main trend is up according to the daily swing chart. A trade through $66.66 will signal a resumption of the uptrend.

A trade through $63.67 will change the main trend to down.

The market is currently testing the June 10, 2015 top at $66.16. If $66.66 is taken out then look for a move into the May 12, 2015 main top at $66.89. This is a potential trigger point for an acceleration into the February 3, 2017 main top at $68.27.

The major support is the contract’s 50% level at $64.11. This price level is controlling the longer-term direction of the market.

Crude oil is also trading well-above its short-term retracement zone at $61.37 to $60.12.

Daily Swing Chart Forecast

Based on the early price action, the direction of the crude oil market on Friday is likely to be determined by trader reaction to $66.16.

A sustained move over $66.16 will indicate the buying is getting stronger. This could trigger a move into $66.66 then $66.89. Look for the upside momentum to increase if this price is taken out with rising volume.

A sustained move under $66.16 will signal the return of sellers. The daily chart shows there is plenty of room to the downside with $64.11 the next major target.