Crude Oil Price Uptrend Intact Above $68.00

Crude oil price surged higher during the past few weeks and traded towards $70.00. The current price action suggests that downsides remains supported above $68.00, and there could be more gains.

April’s nonfarm payrolls report in the US posted a disappointing reading of 164K, but it was still well above the last revised 135K. More importantly, there was a decline in the US unemployment rate from 4.1% to 3.9%.

There was a slight downside reaction in crude oil price, but it recovered quickly and traded above the $70.00 level. Today, China’s Trade Balance figure for April 2018 was published. The outcome was better as there was a sharp rise in trade with a surplus of $28.80B. It was much better than the last deficit of $-4.98B.

Crude Oil Price Chart Analysis

Looking at the 4-hours chart of crude oil price, there is a solid uptrend in place above the $65.00 pivot level. The price traded above the $70.00 resistance recently and formed a high at $70.65.

Later, a downside correction was initiated and the price moved below the $70.00 level. There was a test of the 23.6% Fib retracement level of the last wave from the $66.80 low to $70.65 high.

However, the downside move remains well supported around the $69.50 and $69.00 levels. There is also a major bullish trend line with support at $68.30 on the same chart. The mentioned trend line is positioned just below the 50% Fib retracement level of the last wave from the $66.80 low to $70.65 high.

More importantly, the 100 hourly simple moving average is positioned near the $68.20 level. Therefore, it seems like the price is well supported on the downside above the $68.00 level.

If there is a downside extension, oil buyers are likely to defend further declines. On the upside, a proper daily close above the $70.00 resistance could open the doors for more gains above the $75.00 level in the medium term.

In the cryptocurrencies arena, bitcoin price corrected lower after testing the $10,000 level. However, declines were contained by the $9,200 support level. Similarly, there was a sharp downside correction in ripple price, but losses were supported near $0.8200.

A few altcoins such as ICX, Bitcoin cash, Golem, Ethereum, ADA, BNB, Neo, Loom, FUN and ZRX also recovered nicely from lows. The current price action is positive in the cryptocurrency market, and there is a chance of more gains in bitcoin in the near term.