Crude Oil Price Update – Needs to Hold $51.98 to Maintain Upside Momentum
U.S. West Texas Intermediate crude oil futures are trading slightly lower on Thursday. However, the market has clawed back most of its earlier losses. Currently, the market is trading inside yesterday’s range, which suggests investor indecision and impending volatility.
Putting a lid on the market is concerns over rising U.S. supply. Traders are also worried about the return of sellers after the US-China trade talks ended without an agreement in place. Underpinning the market is the OPEC-led production cuts that could trim the excess supply and stabilize prices.
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At 1310 GMT, March WTI crude oil is trading $52.48, down $0.21 or -0.40%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through $54.98 will change the main trend to up.
The short-term range is 54.98 to $42.67. Its retracement zone at $50.28 to $48.83 is new support.
Daily Technical Forecast
Based on the early price action, the direction of the March WTI crude oil futures contract on Thursday will be determined by trader reaction to the downtrending Gann angle at $51.98.
Bullish Scenario
A sustained move over $51.98 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the next downtrending Gann angle at $53.42. This is the last potential resistance angle before the $54.98 main top.
The main top at $54.98 is a potential trigger point for an acceleration to the upside with the next major target at $59.48.
Bearish Scenario
A sustained move under $51.98 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target the Fibonacci level at $50.28, followed by the 50% level at $48.83.