Crude Oil Price Update – Getting Hot as Market Approaches High of Year
May West Texas Intermediate crude oil futures soared on Wednesday to a six-week high on a surprise decline in U.S. crude inventories and as concern persisted over possible disruption to Middle East supply.
According to the U.S. Energy Information Administration (EIA), crude inventories showed a 2.6 million barrel draw. Analysts had expected a 2.5 million barrel build.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The current upside momentum suggests we could see a near-term test of the February 2 top at $65.63 and the January 25 top at $66.02.
The uptrend is safe at this time unless we close lower for the session.
The main range is $66.02 to $57.60. Its retracement zone at $62.80 to $61.81 is new support. Trading above this is zone is contributing to today’s upside bias.
Daily Swing Chart Technical Forecast
We could see some profit-taking as crude oil approaches the pair of tops at $65.63 and $66.02. However, this is normal and shouldn’t be a major concern unless it turns the market lower for the session.
A closing price reversal top won’t mean the trend is changing, but it could indicate the selling is greater than the buying at current price levels.
This article was originally posted on FX Empire
