Crude Oil Price Update – Trade Through $62.05 Confirms Closing Price Reversal Top

U.S. West Texas Intermediate crude oil futures are trading higher on Thursday, rebounding from early session weakness that was fueled by a surprise build in crude oil inventory, according to the U.S. Energy Information Administration. The price action indicates that investors have confidence that the OPEC-led production cuts will continue to tighten the global supply.

At 13:05 GMT, May WTI crude oil is trading $62.55, up $0.09 or +0.13%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $6299 will indicate the presence of buyers.

The main trend is safe right now, but a trade through $62.05 will confirm a potentially bearish closing price reversal top. This could trigger the start of a 2 to 3 day correction.

The nearest upside target is a long-term Fibonacci level at $63.45.

The new main range is $58.17 to $62.99. If the closing price reversal top is confirmed, then its retracement zone at $60.58 to $60.01 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the May WTI crude oil market the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at $60.17.

Bullish Scenario

A sustained move over $60.17 will indicate the presence of buyers. If this creates enough upside momentum then look for a breakout over $62.99. This could trigger an acceleration to the upside with $63.45 the next major upside target.

Bearish Scenario

A sustained move under $60.17 will signal the presence of sellers. Taking out $62.05 will confirm the closing price reversal top. This could trigger an acceleration to the downside with targets the 200-Day Moving Average and the 50% level at $60.58.