Crude Oil Price Update – Strong Selling Under $60.83 Could Trigger Acceleration into $59.17 – $57.25

U.S. West Texas Intermediate crude oil futures are edging lower for a third straight session on Thursday as an unexpected build in U.S. crude inventories and a resurgence in coronavirus cases in India and Japan renewed concerns about the global demand recovery.

At 04:43 GMT, June WTI crude oil is trading $61.04, down $0.31 or -0.51%.

U.S. crude oil stockpiles unexpectedly edged higher in the week-ended April 16, the Energy Information Administration (EIA) said on Wednesday, confirming American Petroleum Institute (API) data from the day before.

Additionally, India, the world’s third-largest oil user, on Wednesday reported another record increase in its daily death toll from COVID-19. Japan, the world’s No. 4 oil importer, is considering a state of emergency for Tokyo and Osaka as new case numbers surge, broadcaster NHK reported.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $64.38 will change the main trend to up. A move through $57.20 will signal a resumption of the downtrend.

The short-term range is $67.29 to $57.29. Its retracement zone at $62.29 is resistance. The minor range is $57.29 to $64.38. The market is currently testing is pivot at $60.83.

The main range is $51.04 to $67.29. Its retracement zone at $59.17 to $57.25 is the major support. This area is controlling the near-term direction of the WTI crude oil market.

Daily Swing Chart Technical Forecast

The direction of the June WTI crude oil market on Thursday is likely to be determined by trader reaction to the pivot at $60.83.

Bearish Scenario

A sustained move under $60.83 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the main retracement zone at $59.17 to $57.25. Inside this range is a minor bottom at $57.68 and a main bottom at $57.29.

Bullish Scenario

A sustained move over $60.83 will signal the presence of buyers. If this move creates enough upside momentum then look for a potential surge into the short-term 50% level at $62.29. Since the main trend is down, sellers are likely to come in on a test of this level. Overcoming this level, could trigger a further rally into the Fibonacci level at $63.47.

For a look at all of today’s economic events, check out our economic calendar.