Following a mid-week test above $60.00 per barrel, May WTI crude oil futures have posted a significant Friday retracement. For the session, May WTI has fallen by more than $1.00. Prices are trending to the bear and it appears that a test of daily downside support is inevitable.

Today’s selling pressure has undoubtedly knocked many short-term long positions out of the market. However, is the macro bullish trend in WTI crude oil over? Not likely. Couple the spring buying season with OPEC production cuts and prices are likely to rise for the intermediate-term. While the apparent rejection of $60.00 may serve as a top in the coming days, I wouldn’t bet that $60.39 is the upper extreme for May WTI crude futures.

May WTI Crude Oil Futures: Technical Outlook

Thursday brought us an ultra-tight 73 tick range in May WTI. To say the least, this market has opened up considerably throughout the Friday session.

For the immediate future, there are two levels piquing my interest on the daily timeframe:

• Resistance(1): Swing High, $60.39
• Support(1): 38% Retracement, $58.28

Bottom Line: Similar to equities, buying dips isn’t a bad way to play the current WTI market. Until elected, I will have buy orders queued up from $58.31. With an initial stop at $57.94, this trade produces 30 ticks on a slightly sub-1:1 risk vs reward management plan.

If you are trading WTI today, be aware of the Baker-Hughes Rig Count report coming out at 1:00 PM EST. Although the Baker-Hughes is not a primary market mover, it is capable of spiking pricing volatility upon its release.