U.S. West Texas Intermediate crude oil futures are trading higher on Monday with the market posting a trade inside Friday’s daily range. This early chart pattern tends to indicate investor indecision and impending volatility. In other words, traders are waiting for news to help them establish an opinion on today’s price action.
At 11:08 GMT, April WTI crude oil is trading $62.29, up $0.79 or +1.28%.
Supporting the marker early Monday is optimism over COVID-19 vaccinations, a U.S. stimulus package and growing factory activity in Europe despite restrictions imposed to curb the coronavirus.
Perhaps putting a lid on prices are worries that OPEC and its allies may approve allowing as much as 1.5 million barrels per day of crude back into the market.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through $63.81 will signal a resumption of the uptrend. The main trend will change to down on a move through $57.31.
The minor trend is also up. A trade through $58.60 will change the minor trend to down. This will shift momentum to the downside.
The minor range is $57.31 to $63.81. Its 50% level at $60.56 is the first downside target. Since the main trend is up, look for buyers to step in on the first test of this level.
The short-term range is $51.53 to $63.81. Its retracement zone at $57.67 to $56.22 is the primary downside target.
Daily Swing Chart Technical Forecast
The early price action suggests there is no trigger point for a major move at current price levels.
If buyers gain control then look for a rally to possibly test a cluster of levels including a minor top at $63.81 and the October 22, 2018 main top at $64.26.
If sellers are able to push the market through Friday’s low at $61.34 then look for the move to possibly extend into the pivot at 69.56.
For a look at all of today’s economic events, check out our economic calendar.