Crude Oil Price Update – Upside Momentum Could Increase Over $63.05 With $64.07 Next Target

Crude oil futures continue to climb on Tuesday, shortly before the regular session opening. The rally is being driven by worries over tensions between Saudi Arabia and Iran as the Saudi Crown Prince arrives in Washington for talks with President Trump.

At 1145 GMT, May West Texas Intermediate crude oil is trading $62.90, up $0.77 or +1.24%.

Aggressive short-covering and strong speculative buying is helping to generate today’s upside momentum. However, gains are likely to be limited by concerns over rising U.S. production in the wake of another jump in the number of producing rigs last week.

Later today, traders expect the American Petroleum Institute to show a 5 million barrel inventory build.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on a move through $62.22. The momentum created by the move has put crude oil in a position to challenge the next main top at $63.05.

Taking out $63.05 will reaffirm the uptrend and may trigger enough upside momentum to challenge the February 26 main top at $64.07 over the near-term.

The short-term range is $64.07 to $59.91. Its retracement zone at $62.48 to $61.99 is new support. Holding above this zone will give the market an upside bias.

The main range is $57.60 to $64.07. If there is an unexpected collapse in prices then its retracement zone at $60.84 to $60.07 will become the primary downside target.

Daily Swing Chart Technical Forecast

Based on the current price at $63.06 and the earlier price action, the direction of the crude oil market today is likely to be determined by trader reaction to $62.56.

A sustained move over $62.56 will indicate the presence of buyers. This could generate the upside momentum needed to overtake $63.05. This could fuel a move into $64.07.

A sustained move under $62.56 will signal the return of sellers. This could lead to a pullback into the 50% level at $61.62.