Crude Oil Price Update – Testing Critical Area, Bullish Over $64.11, Bearish Under $63.76

March West Texas Intermediate crude oil futures are trading slightly better on Tuesday. Volume has been light in the pre-market session and the market has been trading inside yesterday’s range. This tends to indicate investor indecision and impending volatility.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, the momentum has been drifting lower since the formation of the closing price reversal top on January 16.

A trade through $64.74 will negate the chart pattern and signal a resumption of the uptrend. A move through $62.78 will indicate the selling is getting stronger.

The short-term range is $64.74 to $62.78. Its 50% level or pivot at $63.76 is controlling the short-term direction of the crude oil market.  This is followed closely by the long-term 50% level at $64.11.

Daily Technical Forecast

Based on the early price action, the direction of March WTI crude oil will be determined by trader reaction to $63.76 and $64.11.

A sustained move over $64.11 will signal the presence of buyers. This could trigger a move into a resistance cluster at $64.11 to $64.12. This is a trigger point for a possible move into $64.43. This is the last potential resistance before the $64.74 main top.

A sustained move under $63.76 will indicate the presence of sellers. Crossing to the weak side of the downtrending Gann angle at $63.49 will indicate the selling is getting stronger. This could trigger a break into last week’s low at $62.78, followed by a long-term uptrending Gann angle at $62.32.