Crude Oil Price Update – Strengthens Over $63.45, Weakens Under $63.17

U.S. West Texas Intermediate crude oil futures are trading higher on Monday, but volume is light and volatility is well-below average. The market hit a 5-month high early in the session without much fanfare as traders were more focused on the weakness in the global equity markets. The price action suggests that traders are a little hesitant about buying strength at current price levels. This could encourage profit-taking that could trigger a short-term correction into a value zone.

At 12:05 GMT, May WTI crude oil is trading $63.33, up $0.25 or +0.40%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session. A trade through the intraday high at $63.53 will signal a resumption of the uptrend.

The main trend will change to down on a move through $61.82. However, the bigger concern for buyers is the possibility of a potentially bearish closing price reversal top. A close below $63.08 will form this chart pattern.

The market is currently trading inside the major retracement zone at $59.63 to $63.45. Earlier today it briefly pierced the Fibonacci resistance at $63.45.

Daily Technical Forecast

Based on the early price action, the direction of the May WTI crude oil market is likely to be determined by trader reaction to the Fib level at 63.45 and the uptrending Gann angle at $63.17.

Bullish Scenario

A sustained move over $63.45 will indicate the presence of buyers. This move could trigger an acceleration to the upside since there is no visible resistance.

Bearish Scenario

A sustained move under $63.17 will signal the presence of sellers. If this move attracts enough downside pressure then look for the weakness to possibly extend into a pair of short-term uptrending Gann angles at $62.32 and $62.07. The latter is the last potential support angle before the $61.82 main bottom.