Crude Oil Price Update – Rangebound Due to Below Average Volume
U.S. West Texas Intermediate crude oil futures are trading nearly flat on Thursday as traders position themselves ahead of the long Easter holiday week-end. Volume is well-below average which means we could continue to see a choppy, two-sided trade into the close. On the fundamental side, traders are making adjustments due to concerns over future demand and the possibility OPEC and its allies will end their deal to reduce production after June.
At 14:34 GMT, June WTI crude oil is trading $63.96, up $0.09 or +0.13%.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower. Momentum shifted to the downside with the formation of the closing price reversal top on Wednesday and today’s confirmation of the potentially bearish chart pattern.
A trade through $64.72 will negate the chart pattern and signal a resumption of the uptrend. The main trend will change to down on a trade through $63.15.
On the downside, the first support is the major Fibonacci level at $63.48. This is followed by a retracement zone at $63.32 to $62.99.
Daily Technical Forecast
If buyers take control then look for a test of a pair of uptrending Gann angles at $64.15 and $64.17. Overtaking $64.17 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with $64.72 the next major target.
If sellers take control then look for a break into an uptrending Gann angle at $63.65. This is followed by a cluster of potential support levels at $63.48, $63.40 and $63.32.