Crude Oil Price Update – $61.41-$62.35 Potential Near-Term Target
U.S. West Texas Intermediate crude oil futures are trading higher on Monday after hitting their highest level in over a week after two large crude production bases in Libya began shutting down after forces loyal to commander Khalifa Haftar closed a pipeline. Trading was light with U.S. markets closed for the Martin Luther King Jr. holiday.
At 11:46 GMT, March WTI crude oil is trading $58.92, up $0.34 or +0.58%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through $57.42 will signal a resumption of the downtrend.
The main trend will change to up on a move through the last swing top at $65.40. This is highly unlikely, but there is room for a 50% to 61.8% retracement.
The main range is $58.18 to $65.40. Its retracement zone at $57.79 to $65.99 is a support area. This zone stopped the selling at $57.42 on January 15.
The short-term range is $65.40 to $57.42. Its retracement zone at $61.41 to $62.35 is the next potential upside target.
Daily Swing Chart Technical Forecast
There is no “trigger point” in the market today. The price action is being fueled by news driven momentum.
Taking out the intraday high at $59.77 will indicate the buying is getting stronger. It could be speculative buyers or short-covering driving the price action. If this continues over the near-term then look for the rally to possibly extend into at least $61.41.
If a new minor range forms between $57.42 and $59.77 then look for a potential intraday retracement into its 50% level at $58.60. If buyers come in on a test of this level then look for the rally to possibly resume this week.
This article was originally posted on FX Empire
