Crude Oil Price Update – Retesting Retracement Zone at $61.37 to $60.12

A rebound in the U.S. stock market and a weaker U.S. Dollar are helping to generate enough upside momentum to turn March West Texas Intermediate crude oil futures higher for the session. Short-covering and profit-taking may also be contributing to the move.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $58.07 will signal a resumption of the downtrend. This could lead to an eventual test of the next main bottom at $56.07.

The main range is $56.07 to $66.66. Its retracement zone at $60.12 to $61.37 is currently being tested.

The short-term range is $66.30 to $58.07. If the rally continues then its retracement zone at $62.19 to $63.16 will become the primary upside target.

Daily Technical Forecast

Based on the early trade, the direction of crude oil today is likely to be determined by the Fibonacci level at $60.12.

A sustained move over $60.12 will indicate the presence of buyers. This could lead to a labored rally because of a cluster of Gann angles at $60.30 and $60.66. The market starts to open up on a move over $60.66 with the next potential targets a long-term uptrending Gann angle at 60.95 and a 50% level at $61.37.

The 50% level at $61.37 is a potential trigger point for an acceleration into $62.19.

A sustained move under $60.12 will signal the presence of sellers. The daily chart is open to the downside with the first potential support angle coming in at $58.51, followed by the minor bottom at $58.07.