Crude Oil Price Update – Strengthens Over $66.00, Weakens Under $65.45

U.S. West Texas Intermediate crude oil futures are trading higher late in the session on Thursday on optimism that the current pace of vaccinations in the U.S. will revive the economy faster than expected, leading to a speedier recovery in crude oil demand.

A greater-than-expected build in crude oil inventories could have limited gains, while a greater-than-expected draw in gasoline and distillate stocks provided the support.

At 19:38 GMT, May WTI crude oil futures are trading $65.98, up $1.56 or +2.42%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $67.69 will signal a resumption of the uptrend. The main trend will change to down on a trade through $59.08.

The minor trend is also up. The new minor bottom is $63.10. A trade through this bottom will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is $59.08 to $67.79. Its retracement zone at $63.44 to $62.41 is support. This zone stopped the selling at $63.10 on Wednesday.

The minor range is $67.79 to $63.10. The market is currently testing its retracement zone at $65.45 to $66.00. This zone is very important to the structure of the chart pattern.

Trend-trading buyers are going to try to drive the market through $66.00 in an effort to take out $67.79. This would make $63.10 a new higher bottom.

Aggressive counter-trend sellers could come in on a test of this zone. They may try to form a potentially bearish secondary lower top.

Short-Term Outlook

The next major move is likely to be determined by trader reaction to $65.45 and $66.00.

A sustained move over $66.00 will indicate the buying is getting stronger. If this creates enough upside momentum then look for the rally to possibly extend into the main top at $67.79.

A sustained move under $65.45 will signal the presence of sellers. This could lead to a retest of $63.44 to $62.41. The latter is a potential trigger point for an acceleration to the downside.

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