U.S. West Texas Intermediate crude oil futures are trading more than 1% higher at the mid-session on Monday with the rally being driven by solid Chinese economic figures and an impressive vaccination rate in the United States. Both point toward strong demand in the world’s two-largest economies.
At 16:58 GMT, June WTI crude oil is trading $64.29, up 0.71 or +1.12%.
With the U.S. and China expected to drive a recovery in demand from the coronavirus pandemic, investors have become less worried over the record-breaking infection rates in India, the third-largest fuel importer worldwide, along with higher OPEC+ oil supply.
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. The main trend will change to down on a move through $60.61.
The short-term range is $67.29 to $57.29. Its retracement zone at $63.47 to $62.29 provided support earlier in the session.
The minor range is $60.61 to $65.47. Its 50% level at $63.04 actually stopped the selling earlier in the day.
Another minor range is $65.47 to $62.91. Its 50% level at $64.19 is currently being tested.
Daily Swing Chart Technical Forecast
The direction of the crude oil market into the close on Monday will be determined by trader reaction to $64.19.
A sustained move over $64.19 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into $65.47.
A sustained move under $64.19 late in the session will signal the presence of sellers. This could create the downside momentum needed to challenge $63.47 and $63.04.
Aggressive counter-trend sellers may try to stop the intraday rally in an effort to form a minor secondary lower top.
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