Crude Oil Price Update – Could Weaken Under $59.58, Strengthen Over $59.95
U.S. West Texas Intermediate crude oil futures are trading flat early Friday, supported by a weaker U.S. Dollar and capped by worries over rising supplies and the impact on fuel demand from the COVID-19 pandemic. A weaker dollar makes oil cheaper for holders of other currencies, which usually helps boost crude prices.
At 06:46 GMT, May WTI crude oil is trading $59.54, down $0.06 or -0.10%.
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The May futures contract is on pace to post a 2% – 3% loss this week after a decision by OPEC and its allies, including Russia, to gradually increase supplies by 2 million barrels per day between May and July.
Rollover to the June WTI crude oil futures contract on Monday.
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.
If sellers take out $57.63 then $62.27 will become a new main top.
The main range is $51.37 to $67.79. The market is currently testing its retracement zone at $59.58 to $57.64.
The minor range is $62.27 to $57.63. Its 50% level at $59.95 is potential resistance.
The first short-term range is $66.44 to $57.25. Its 50% level at $61.85 is another resistance level.
The second short-term range is $67.79 to $57.25. Its retracement zone at $62.52 to $63.76 is another resistance zone.
Daily Swing Chart Technical Forecast
The direction of the May WTI crude oil futures contract on Friday is likely to be determined by trader reaction to $59.95 and $59.58.
Bullish Scenario
A sustained move over $59.95 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a potential acceleration to the upside with the next target a resistance cluster at $61.75, $61.85, $62.27 and $62.52.
Bearish Scenario
A sustained move under $59.58 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the support cluster at $57.64, $57.63, $57.25 and $57.06. The latter is a potential trigger point for an acceleration to the downside.