U.S. Markets closed

Crude Oil Price Update – Late Session Test of Retracement Zone Support at $63.47 to $62.29

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

U.S. West Texas Intermediate crude oil futures are trading more than 2% lower late Friday, falling from a six-week high as investors booked profits on worries about fuel demand in India as COVID-19 infections continued to surge. Investors were also encouraged to trim long positions after Japan reported weak crude import data.

At 17:50 GMT, June WTI crude oil futures are trading $63.63, down $1.38 or -2.12%.

Japan imports fell 25% in March from a year earlier to 2.34 million barrels per day, according to government figures. However, the country’s factory activity expanded at the fastest pace since early 2018.

Daily June WTI Crude Oil
Daily June WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $65.47 will signal a resumption of the uptrend. A move through $60.61 will change the main trend to down.

The minor trend is also up. A new minor top has formed at $65.47. The nearest minor bottom is $60.66.

The short-term range is $67.29 to $57.29. Its retracement zone at $63.47 to $62.29 is potential support. The market is currently testing this zone. It is controlling the near-term direction of the market.

The minor range is $60.61 to $65.47. Its 50% level at $63.04 is potential support. This level falls inside the short-term retracement zone.

The major support range is $59.17 to $57.25.

Short-Term Outlook

The direction of the June WTI futures contract into the close on Friday is likely to be determined by trader reaction to the minor pivot at $63.04 and the short-term Fibonacci level at $63.47.

Bullish Scenario

A sustained move over $63.47 will indicate the presence of late-session buyers. This could trigger a late session rally into $64.28.

Bearish Scenario

A sustained move under $63.04 will signal the presence of sellers. This could trigger a further break into the short-term 50% level at $62.29. This is a potential trigger point for an even steep decline into the main bottom at $60.61.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: