Crude Oil Price Update – Sustained Move Under $62.29 Targets $60.83 to $60.61

U.S. West Texas Intermediate crude oil futures are inching lower early Monday on concerns over lower fuel demand amid a resurgence of coronavirus infections in India and Japan.

In India, Prime Minister Narendra Modi urged all citizens to be vaccinated and exercise caution, saying on Sunday the “storm” of infections had shaken India, as the country set a new global record for the most COVID-infections in a day.

Meanwhile in Japan, a third state of emergency in Tokyo, Osaka and two other prefectures began on Sunday, affecting nearly a quarter of the population as the country attempts to combat a surge in cases three months before the Tokyo Olympics is set to open.

At 05:05 GMT, June WTI crude oil futures are trading $61.84, down $0.30 or -0.46%.

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 trade through $57.29 will reaffirm the downtrend.

A trade through $62.43 will make $60.61 a new main bottom.

The minor trend is also down. A new minor bottom as formed at $60.61. Taking out this level will indicate the selling pressure is getting stronger.

The short-term range is $67.29 to $57.29. Its retracement zone at $62.29 to $63.47 is resistance.

The minor range is $57.29 to $64.38. Its 50% level or pivot at $60.83 is minor support.

The main range is $51.04 to $67.29. Its retracement zone at $59.17 to $57.25 is the primary support zone. This zone stopped the selling recently at $57.68 and $57.29.

Daily Swing Chart Technical Forecast

The direction of the June WTI crude oil market on Monday is likely to be determined by trader reaction to $62.29.

Bearish Scenario

A sustained move under $62.29 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into $60.83, followed by the minor bottom at $60.61. This is a potential trigger point for an acceleration to the downside with the next target the main 50% level at $59.17.

Bullish Scenario

A sustained move over $62.20 will signal the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into $63.47. This is followed by the new main top at $64.38.