Crude Oil Price Update – Next Big Challenge for Bullish Traders is $53.26 Main Top

U.S. West Texas Intermediate crude oil futures finished slightly lower on Monday after clawing back most of its early loss despite relatively low volume.

After hitting its highest level since February 2020 late last week, prices were pressured on the opening as tough coronavirus lockdowns around the world renewed concerns about global fuel demand, while a stronger U.S. Dollar also weighed on foreign demand of the dollar-based commodity.

At 22:00 GMT, March WTI crude oil was trading $52.18, down $0.08 or -0.15%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $52.74 will signal a resumption of the uptrend, while a move through the February 20, 2020 top at $53.26 will reaffirm the uptrend.

The main trend will change to down on a move through $47.31. This isn’t a big concern at this time, but due to the prolonged move up in terms of price and time, we’ll continue to watch for signs of a closing price reversal top chart formation. This won’t change the trend to down, but it could trigger the start of a 2 to 3 day correction.

The minor range is $47.31 to $52.74. Its 50% level at $50.03 is the first potential downside target. Since the main trend is up, buyers could step in on the first test of this level.

The main range is $35.00 to $52.74. If the main trend changes to down then its retracement zone at $43.87 to $41.78 will become the primary downside target zone.

Short-Term Outlook

The current set up is giving trend trading investors a choice.

They can either play for a breakout over $53.26 that could eventually lead to a test of the January 8, 2020 top at $57.41, of they can wait for a pullback into a value area.

The first minor value area is $50.03. The major value area is $43.87.

Due to the number of swing bottoms between $35.00 and $52.74, it looks as if sellers will face a lot of opposition, creating a labored move.