Crude Oil Price Update – Bullish Over $51.36 with $52.62 Next Likely Target

November West Texas Intermediate crude oil futures spiked higher on Monday and traded over $51.00 a barrel for the first time since May. Traders said that the rally was fueled by strong hedge fund buying on the notion that demand would continue to increase and the major oil producers plan on extending a deal to limit output.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The market isn’t close to turning down, but it is in the window of time for a potentially bearish closing price reversal top. This is most likely to occur as the market nears the May 25 top at $52.62.

The support is the major Fibonacci level at $50.30. A trade under this level will indicate a serious shift in investor sentiment.

Daily Forecast

WTI crude oil is trading on the strong side of a long-term downtrending angle at $51.36. Look for the bullish tone to continue today as long as the market remains above this angle. The daily chart indicates there is enough room to the upside to trigger a possible surge into $52.62.

A break back under $51.36 will signal that the selling is greater than the buying and that the bullish traders may want to buy a dip rather than strength.

The major support is a price cluster formed by the Fib level at $50.30 and the uptrending angle at $50.14.

Basically, look for the bullish tone to continue today as long as crude oil holds above $51.36.