Crude Oil Price Update – Upside Momentum Building into Close

Crude oil futures are trading slightly higher at the mid-session. The market is still trading inside Wednesday’s range which suggests investor indecision and impending volatility.

At 1803 GMT, June West Texas Intermediate crude oil futures are trading $66.74, up $0.01 or +0.01%.

Earlier in the session, the market was pressured by a weaker U.S. Dollar, but picked up support as the trading day wore on from mounting political tension in the Middle East and shrinking oil inventories.

The market was further supported by a report that said the U.S. is considering eight possible targets in Syria with President Trump saying a decision is coming ‘fairly soon’.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $67.38 will signal a resumption of the uptrend. This could trigger a further rally into the February 3, 2015 main top at $68.87 and the December 24, 2014 main top at $69.53.

The new short-term range is $61.86 to $67.38. If there is weakness late in the session then its retracement zone at $64.62 to $63.97 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the crude oil market into the close will be determined by trader reaction to $66.74.

A trade through $66.74 will indicate the presence of buyers. If this generates enough upside momentum then look for buyers to go after yesterday’s high at $67.38.

Taking out $67.38 will mean the buying is getting stronger with $68.87 the minimum upside target.

A break through $65.09 will signal a shift in momentum to the downside.