Crude Oil Price Update – Sellers Targeting Key Retracement Zone at $59.58 – $57.64
U.S. West Texas Intermediate crude oil futures are trading lower on Monday as traders slowly return to the markets following the long Easter holiday weekend. Pressuring prices are fear of rising supply after OPEC and its allies agreed last week to gradually ease some of its production cuts between May and June. And while investors continued to raise concerns over slower demand recovery due to new lockdowns and restrictions in Europe and worries over another global surge in coronavirus cases.
At 10:28 GMT, May WTI crude oil futures are trading $60.33, down $1.12 or -1.82%.
Late last week, OPEC+ agreed to ease production curbs by 350,000 barrels per day (bpd) in May, another 350,000 bpd in June and further 400,000 bpd or so in July.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through $57.25 will signal a resumption of the downtrend. The main trend will change to up on a move through $66.44.
The minor trend is also down. A trade through $62.27 will change the minor trend to up and shift momentum to the upside. A move through $58.85 will indicate the selling pressure is getting stronger.
The main range is $51.37 to $67.79. Its retracement zone at $59.58 to $57.64 is potential support. This zone is controlling the near-term direction of the market.
The minor range is $66.44 to $57.25. Its 50% level at $61.85 resistance.
The short-term range is $67.79 to $57.25. Its retracement zone at $62.52 to $63.76 is controlling the upside.
Daily Swing Chart Technical Forecast
The early downside momentum suggests the direction of the market on Monday will be determined by trader reaction to the minor pivot at $61.85.
A sustained move under $61.85 will indicate the presence of sellers. If this move creates enough downside momentum then look for a move into $59.58. Watch for a technical bounce on the first test of this level.
If $59.58 fails as support then look for the move to extend into the minor bottom at $58.85. This is followed by the Fibonacci level at $57.64 and a pair of main bottoms at $57.25 and $57.06. The latter is a potential trigger point for an acceleration to the downside.
A sustained move over $61.85 could lead to a labored market with potential targets the minor top at $62.27, followed by the short-term retracement zone at $62.52 to $63.76.