Crude Oil Price Update – Strengthens Over $59.75, Weakens Under $59.17

U.S. West Texas Intermediate crude oil futures are inching higher on Monday shortly before the New York opening amid hopes that fuel demand in the United States will begin picking up as the country heads into the summer driving season.

There is still optimism over the pace of the vaccination rollout in the U.S. but a temporary shortage in vaccines and increasing COVID-19 case numbers in the U.S. and other countries could be capping gains.

At 09:36 GMT, June WTI crude oil futures are trading $59.49, up $0.14 or +0.24%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $57.29 will signal a resumption of the downtrend. The main trend will change to up on a move through $62.22.

The minor trend is also down. A trade through $61.75 will change the minor trend to up. This will shift momentum to the upside. A move under $57.68 will indicate the selling is getting stronger.

The main range is $51.04 to $67.29. The market appears to be trying to form a support base inside its retracement zone at $59.17 to $57.25.

The minor range is $57.29 to $62.22. Its 50% level at $59.75 is acting like resistance.

The first short-term range is $66.15 to $57.29. Its 50% level is potential resistance.

The second short-term range is $67.29 to $57.29. Its retracement zone at $62.29 to $63.47 is the primary upside target area and also future resistance.

Daily Swing Chart Technical Forecast

The direction of the June WTI futures contract on Monday is likely to be determined by trader reaction to $59.75 and $59.17.

Bullish Scenario

A sustained move over $59.75 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a near-term surge into $61.72 to $62.29.

Bearish Scenario

A sustained move under $59.17 will signal the presence of sellers. This could generate the downside momentum needed to drive the market into the potential support cluster at $57.29 to $57.25.