Crude Oil Price Update – Overcoming $63.48 Could Trigger Rally into $64.44 to $64.95

U.S. West Texas Intermediate crude oil futures plunged on Friday on concerns over supply. The move was fueled by comments from President Trump who said he told OPEC to take action to temper fuel costs. This caught investors by surprise, giving them little choice but to take profits after spiking to a six-month high earlier in the week.

On Friday, June WTI crude oil futures settled at $63.30, down $1.91 or -$2.93. The low for the session was $62.28. The trade on Friday erased all of the week’s gains.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. It turned down on Friday when sellers took out the previous swing bottom at $63.15. The next target is the April 5 bottom at $61.92. A trade through $66.60 will change the main trend to up.

On the upside, the resistance is a long-term Fibonacci level at $63.48.

The main range is $58.41 to $66.60. Its retracement zone at $62.51 to $61.54 is the first downside target. It provided some support on Friday when the selling stopped at $62.28.

The short-term range is $66.60 to $62.28. Its retracement zone at $64.44 to $64.95 is the first upside target.

The major support is the long-term 50% level at $59.73.

Daily Swing Chart Technical Forecast

Based on Friday’s price action and the close at $63.30, the direction of the June WTI crude oil market on Monday is likely to be determined by trader reaction to the major Fibonacci level at $63.48.

Bullish Scenario

A sustained move over $63.48 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the short-term 50% level at $64.44, followed by the short-term Fibonacci level at $64.95.

Bearish Scenario

A sustained move under $63.48 will signal the presence of sellers. This could trigger a retest of the main 50% level at $62.51 and Friday’s low at $62.28.

If $62.28 fails then look for the selling to extend into the main Fibonacci level at $61.54. This is followed by the 200-day Moving Average at $60.80. Crossing to the weak side of the 200-day Moving Average could drive the market into the major 50% level at $59.73.