Crude Oil Price Update – Trading on Strong Side of Short-Term Retracement Zone at $63.47 to $62.29
U.S. West Texas Intermediate crude oil futures are trading higher late in the session on Thursday as bullish forecasts of recovering demand outweighed concerns about the impact of rising COVID-19 cases in several hot spots around the world.
At 18:30 GMT, June WTI crude oil futures are trading $65.02, up $1.16 or +1.82%.
“The performance of the past few days demonstrates the unbroken faith of the market in healthy economic and demand recovery,” Tamas Varga, analyst at PVM Oil associates said.
“It also implies that the perilous and devastating COVID nightmare engulfing in India, Japan and Turkey, amongst others, is not expected to have a long-lasting impact on economic expansion.’
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through the intraday high at $65.47 will signal a resumption of the uptrend. The main trend will change to down on a trade through $60.61.
The short-term range is $67.29 to $57.29. The market is currently trading on the bullish side of its retracement zone at $63.47 to $62.29. This zone is new support and it’s also controlling the near-term direction of the futures contract.
The daily chart indicates there is plenty of room to the upside so if the momentum continues we could see a test of the next main top at $66.15 over the near-term. This is the last potential resistance level before the March 8 main top at $67.29.
On the downside, the major support is the retracement zone at $63.47 to $62.29.
The first support is the Fibonacci level at $63.47. Since the trend is up, buyers could come in on a test of this level.
If $63.47 fails as support then look for a drive into the 50% level at $62.29.
Holding between $63.47 and $62.29 will give us a neutral signal.
A failure to hold $62.29 will indicate the buying is slowing and the selling pressure is increasing.
For a look at all of today’s economic events, check out our economic calendar.