Crude Oil Price Update – Still Feeling Pressure from Last Week’s Closing Price Reversal Top

March West Texas Intermediate crude oil futures are trading lower after erasing earlier gains. The market opened higher in reaction to a drop in the U.S. rig count and a conflict in the Middle East, but it gave up its gains on the restarting of a Libyan oilfield. Saudi comments indicating OPEC could continue to limit output past 2018 and global growth may be limiting losses.

 

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on January 16.

A trade through $64.74 will negate the closing price reversal top and signal a resumption of the uptrend. A move through $62.78 will indicate the selling is getting stronger.

The short-term 50% level or pivot at $63.76 is controlling the direction of the market.

The main range is $56.07 to $64.74. If the selling gains traction then its retracement zone at $60.41 to $59.38 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the crude oil market today will be determined by trader reaction to the resistance cluster at $63.74 to $63.76.

A sustained move under $63.74 will signal the presence of sellers. This could drive the market into last week’s low at $62.78, followed by the uptrending Gann angle at $62.07. Closing on the weak side of this angle will put crude oil in a bearish position.

A sustained move over $63.76 will indicate the presence of buyers. This could trigger a quick move into $64.11, followed by a downtrending Gann angle at $64.24. This is the last potential resistance angle before the $64.74 main top.