Crude Oil Price Update – Should Hit $61.37 to $60.12 This Week

March West Texas Intermediate crude oil futures plunged on Wednesday following the release of the U.S. Energy Information Administration’s weekly inventories report that showed domestic crude supplies rose 1.9 million barrels for the week-ended February 2. Traders were looking for an increase of 2.8 million barrels.

Gasoline stockpiles climbed by 3.4 million barrels for the week, while distillate stockpiles also rose 3.9 million barrels, according to the EIA.

Daily Technical Analysis

The main trend is down according to the daily swing chart. It changed to down earlier in the week when sellers took out $63.67.

The market also plunged when it crossed to the weak side of the major 50% level at $64.11. This level is new resistance.

The main range is $56.07 to $66.66. Its retracement zone at $61.37 to $60.12 is the primary downside target. We could see a technical bounce on the first test of this zone.

Daily Technical Forecast

Crude oil prices could remain under pressure the rest of the session with $61.37 the minimum downside target.

Based on the current price action, the direction of the market the rest of the session will be determined by trader reaction to the steep downtrending Gann angle at $62.16.

A sustained move under $62.16 will signal the presence of sellers. This could lead to a break into the 50% level at $61.37, followed by a long-term uptrending Gann angle at $60.57 and the Fibonacci level at $60.12.

A sustained move over $62.16 will be evidence of profit-taking and short-covering.