Crude Oil Price Update – Sustained Move Over $58.06 Will Target April 2019 Top at $58.95
U.S. West Texas Intermediate crude oil futures soared to their highest level since May 1, 2019 on Monday, boosted by strong compliance with the OPEC+ production cuts and hopes for further U.S. economic stimulus. A jump to over $60 by international-benchmark Brent crude oil futures also contributed to the overall strength in the energy complex.
At 21:45 GMT, March WTI crude oil futures are trading $58.02, up $1.17 or +2.06%.
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Brent and WTI have risen more than 60% since the start of November. Optimism around coronavirus vaccine distributions as well as production cuts from OPEC+ members has bolstered prices.
Investors are also keeping watch on a $1.9 trillion COVID-19 aid package for the United States that is expected to be passed as soon as this month.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The trend was reaffirmed early in the session when buyers took out the January 8, 2020 main top at $57.41, the May 21, 2019 main top at $57.74 and the May 1, 2019 main top at $58.06.
The new intraday range is $51.64 to $58.14. Its retracement zone support is $54.89 to $54.12. This zone will move up as the market moves higher.
Short-Term Outlook
Buyers will be looking to extend gains into the close or early Tuesday on a trade through $58.06. If this move can create enough upside momentum then look for another surge into the April 23, 2019 main top at $58.95.
With the market going vertical, the biggest fear for long investors should be a closing price reversal top. This chart pattern won’t change the main trend to down, but it could trigger the start of a 2 to 3 day correction. The move will be designed to alleviate some of the upside momentum.
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