June West Texas Intermediate crude oil futures are trading over 2.0% higher shortly before the cash market opening on Tuesday. The catalysts behind the rally are increased concerns over U.S. military activity in Syria and stronger demand for higher risk assets.
Daily Technical Analysis
The main trend is down according to the daily swing chart, but momentum shifted to the upside earlier today. A trade through $65.35 will change the main trend to up with $66.37 the next likely upside target.
A trade through $61.86 will signal a resumption of the downtrend.
The main range is $60.07 to $66.37. Its retracement zone at $63.22 to $62.48 is support.
The short-term range is $66.37 to $61.86. Its retracement zone at $64.12 to $64.65 is the primary upside target. This zone is currently being tested. Since the trend is down, sellers may try to drive the market back under this zone. Aggressive, counter-trend buyers are going to try to drive the market through this zone in order to solidify the importance of the bottom at $61.86.
Daily Technical Forecast
Based on the early trade, the direction of the crude oil market today is likely to be determined by trader reaction to the uptrending Gann angle at $64.57 and the Fibonacci level at $64.65.
A sustained move over $64.65 will indicate the presence of buyers. This could trigger a further rally into the downtrending Gann angle at $65.12.
Overtaking $65.12 will indicate the buying is getting stronger with potential targets coming in at $65.35 and $65.75. The last downtrending Gann angle before the $66.37 main top is $66.06.
A sustained move under $64.57 will signal the presence of sellers. This could trigger a retest of the 50% level at $64.12. Crossing to the weak side of this level will signal a shift in momentum back to down.
Crossing to the bearish side of the downtrending Gann angle at $63.87 will also be a sign that the selling is getting stronger.