Crude Oil Price Update – Strengthens Over $64.71, Weakens Under $63.92

U.S. West Texas Intermediate crude oil prices are under pressure Thursday after touching a fresh 5-month high on Wednesday. Long investors are booking profits and trimming positions in reaction to renewed concerns over rising U.S. inventories. While the early move suggests the market could be in for a short-term correction, traders feel the downside will be limited by tightening global supplies.

At 14:01 GMT, June WTI crude oil is trading $64.27, down $0.38 or -0.49%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $64.71 will signal a resumption of the uptrend. The main trend will change to down on a move through the last main bottom at $61.92.

The major support is a long-term Fibonacci level at $63.48.

The short-term range is $61.92 to $64.71. Its retracement zone at $63.32 to $62.99 is the next downside target.

Since the main trend is up, buyers are likely to come in on the first test of $63.48 to $62.99.

Daily Technical Forecast

Based on the early price action, the direction of the June WTI crude oil market on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at $63.92. This angle was challenged earlier in the session.

Bullish Scenario

A sustained move over $63.92 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for the rally to possibly extend into $64.71. Overtaking this top will signal a resumption of the uptrend. This could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under $63.92 will signal the presence of sellers. If this move generates enough downside momentum then look for a potential break into the major Fib level at $63.48. This is followed closely by a short-term 50% level at $63.32.

If $63.32 fails as support then look for the selling to possibly extend into the support cluster at $62.99 to $62.92.