Crude Oil Price Update – Could Form Support Base Inside Key Retracement Zone at $52.70 to $55.32
U.S. West Texas Intermediate crude oil futures are trading higher during the extended period. Prices are climbing from a five-month low hit on June 5 on the back of positive comments from Saudi Arabia regarding OPEC and its allies extension of the protection cuts that have been guiding prices higher since January 1, beyond June.
At 19:43 GMT, July WTI crude oil prices are trading $54.12, up $1.53 or +2.91%.
Your capital is at risk
Also helping to underpin prices are a weaker dollar, which may be increasing foreign demand for dollar-denominated gold. The market also recovered from an early session setback fueled by weaker-than-expected U.S. jobs data.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, weekly momentum may be shifting to the upside with the formation of a weekly closing price reversal bottom.
The market is in no position to turn the trend to up, but there is room for a normal 50% to 61.8% retracement.
A trade through $50.60 will reaffirm the downtrend. This could lead to an eventual test of the next main bottom at $44.20.
The main range is $44.20 to $66.44. The market is currently trading inside its retracement zone at $55.32 to $52.70. Trader reaction to this zone will determine the near-term direction of the crude oil market.
The short-term range is $63.96 to $50.60. Its retracement zone at $57.31 to $58.88 is the primary upside target.
Daily Technical Forecast
Based on the current price at $54.12, the direction of the July WTI crude oil market into the close is likely to be determined by trader reaction to the Fibonacci level at $52.70.
Bullish Scenario
A sustained move over $52.70 will indicate the presence of buyers. If this creates enough upside momentum then look for a late session surge into the 50% level at $55.32.
Bearish Scenario
A failure at $52.70 will signal the return of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the uptrending Gann angle at $51.28.