Crude Oil Price Update – Taking Out $60.75 Will Change Trend to Down

April West Texas Intermediate crude oil futures settled more than 2 percent lower on Wednesday after U.S. government data showed crude inventories rose more than expected last week while gasoline stocks posted a big build instead of the draw that was predicted.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is now trending lower. A trade through $60.75 will change the main trend to down. A move through $64.24 will signal a resumption of the uptrend.

Trader reaction to a series of retracement levels could dictate the direction of the market over the near-term.

The main range is $66.39 to $57.90. Its retracement zone is $62.15 to $63.15. The close under this zone signaled the shift in momentum.

The major retracement zone is $61.18 to $59.94. Inside this zone is a short-term retracement zone. The 50% level of this zone is $61.07 to $60.32.

Combining the two 50% levels creates a near-term support cluster at $61.18 to $61.07. Since the main trend is up, buyers could come in on a test of this area.

Daily Swing Chart Technical Forecast

Based on the momentum on Wednesday’s close, the selling is likely to continue on Thursday with $61.18 to $61.07 the first downside target.

Holding above $61.18 will indicate that buyers are stepping back in to support the market. If they create enough upside momentum then we could see a move into a 50% level at $62.15.

If the selling is strong enough to take out $61.07 then look for the weakness to extend into $60.75. Taking out this bottom will change the main trend to down with the next two targets $60.32 and $59.94.

The trigger point for an acceleration to the downside is $59.94.