11 June, AtoZForex.com, Singapore — Crude Oil climb past resistance at 61.80. Crude Oil price rose to the highest level in a week on Wednesday, on the back of weaker U.S. Crude inventories data (6.8 million – release vs. -1.5 million – forecast). The decline in U.S. stockpile is viewed as bullish for the commodity as prices continue to found upside strong support on technical pattern treading above the 120 day EMA and the 161.80% Fibonacci Expansion level. At this point, any interest in selling in the commodity is unlikely, given the way that Crude Oil is responding.
Breezing past the 78.60% Fibonacci Retracement level, Crude Oil Price peaked at 61.80 on Wednesday, prior to the release of U.S. Crude inventories data. Thereafter the release of the weaker U.S. Crude inventories data, prices had a turn around, pulling back to 61.10 level. Importantly, the commodity is looking strong as technical pattern continue to form on the bullish bias on the H4 chart. Should price closed above 61.60 level in the near term, we feel the market will then head to the 63.60 level.
Testing the resistance at 61.60, Crude Oil price is clearly developing a bullish momentum which has managed to hold firm. Reinforced by the fact that candles is holding above the 20, 55 & 200 MA lines, price continues to rise, breaching the 61.60 barrier before heading gradually towards the waited target at 62.50. Expected trading range for today is between 60.50 support and 62.50 resistance.