Crude Oil Price Update – Sustained Move Over Major 50% at $64.11 Will Be Bullish

Aggressive hedge fund buying continues to drive March West Texas Intermediate crude oil futures higher on the weekly chart. The catalyst behind the rally is strong compliance with the OPEC-led plan to cut production, trim the global supply and stabilize prices.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. The uptrend was confirmed on Wednesday when buyers took out last week’s high and closing price reversal top at $64.74.

The major 50% level is $64.11. For a third week in a row, the market is straddling this level. This level is controlling the longer-term direction of the market.

Weekly Technical Forecast

Based on the early price action, the direction of the crude oil market the rest of the session will be determined by trader reaction to $64.11.

A sustained move over $64.11 will signal the presence of buyers. The next target is an uptrending Gann angle at $65.07. This angle is moving up at a rate of $1.00 per week from the $50.07 main bottom. It has also been guiding the market higher for 15 weeks.

Crude oil could continue the uptrend by bumping the angle from underneath so it’s more like rising resistance. However, crossing to the strong side of the angle will put crude oil in an extremely strong position.

A close below $64.11 will be the first sign of selling pressure. A close below $63.31 will produce a second consecutive closing price reversal top. This chart pattern may be the one that fuels the start of a steep sell-off.