Crude Oil Price Update – Upside Momentum Could Target $61.85 to $63.76 Late Session

U.S. West Texas Intermediate crude oil futures are trading higher at the mid-session on Friday on concerns that a large container ship that ran aground in the Suez Canal may block the vital shipping lanes for weeks, squeezing supply. The news is offsetting some of the concerns over the renewed lockdowns in Germany. Nonetheless, the market is still poised to close lower for the week.

At 15:21 GMT, May WTI crude oil is trading $60.84, up $2.28 or +3.89%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $57.25 will signal a resumption of the downtrend. The main trend will change to up on a move through $66.44.

The main range is $51.37 to $67.79. Its retracement zone at $59.58 to $57.64 stopped the price slide earlier in the week. The market is now trading on the strong side of this zone, making it support.

The minor range is $66.44 to $57.25. Its 50% level at $61.85 is the first upside target.

The short-term range is $67.79 to $57.25. Its retracement zone at $62.52 to $63.76 is the primary upside target.

Since the main trend is down, look for sellers on a test of $61.85 to $63.76.

Daily Swing Chart Technical Forecast

The early price action suggests the key level to watch into the close will be the main 50% level at $59.58.

Bullish Scenario

A sustained move over $59.58 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential surge into the retracement levels lined up at $61.85, $62.52 and $63.76.

Bearish Scenario

A sustained move under $59.58 will signal the presence of sellers. This could trigger a pullback into $57.64, followed closely by $57.25 and $57.06. The latter is a potential trigger point for an acceleration to the downside with $51.37 the next major target.

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