Crude Oil Price Update – First Downside Target $58.02, Nearest Upside Target $59.64
U.S. West Texas Intermediate crude oil futures are trading lower on Monday as investors take profits after OPEC’s decision to trim production on Friday, and in response to data from China showing exports declined for a fourth straight month.
On Friday, OPEC and its allies announced they would deepen production cuts until at least March 2020 in an effort to trim global supply and stabilize prices. On Sunday, a report from China showed exports in November fell 1.1% from a year earlier.
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At 12:17 GMT, January WTI crude oil is at $58.59, down $0.62 or -1.04%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through $59.85 will signal a resumption of the uptrend. The main trend will change to down on a move through $55.02.
The minor trend is also up. A move through $57.70 will change the minor trend to down. This will also shift momentum to the downside.
The main range is $61.48 to $50.69. Its retracement zone at $57.36 to $56.08 is support. This zone is also controlling the longer-term direction of the market.
Daily Technical Forecast
If the early downside momentum continues on Monday then look for a pullback into the steep uptrending Gann angle at $58.02. Since the main trend is up, buyers could come in on a test of this angle.
If $58.02 fails as support then look for the selling to extend into the minor bottom at $57.70. Taking out this bottom could drive the market into the main Fibonacci level at $57.36.
On the upside, the nearest resistance is a downtrending Gann angle at $59.64. This is followed closely by Friday’s high at $59.85.
Taking out $59.85 could trigger a surge into the next downtrending Gann angle at $60.56. This is the last potential resistance angle before the $61.48 main top.