Crude Oil Price Update – Strengthens Over $59.49, Weakens Under $57.58
U.S. West Texas Intermediate crude oil futures are trading slightly higher on Friday, shortly before the regular session opening. The market has been trading sideways the last three session after posting a more than 10% rally on Monday and a 5% drop on Tuesday. Nonetheless, it’s still in a position to post a more than 6% gain for the week on the back of elevated tensions in the Middle East.
At 09:42 GMT, November WTI crude oil futures are trading $58.66, up $0.47 or +0.79%.
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The gains this week are the risk premium traders have placed on the market just in case the Saudis can’t repair their oil production facilities in a timely manner.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A move through $63.89 will signal a resumption of the uptrend. The main trend will change to down on a trade through $53.93.
The minor trend is also up. A trade through $57.58 will change the minor trend to down. This will also shift momentum to the downside.
The major retracement zone is $59.29 to $62.64. Its retracement zone is controlling the longer-term direction of the market.
The main range is $53.93 to $63.89. Its retracement zone at $58.91 to $57.73 is acting like support.
The short-term range is $63.89 to $57.58. Its retracement zone is a potential upside target.
Daily Swing Chart Technical Forecast
Based on the early price action and the current price at $58.66, the direction of the November WTI crude oil futures contract the rest of the session on Friday is likely to be determined by trader reaction to the main 50% level at $58.91.
Bullish Scenario
Taking out and sustaining a rally over $58.91 will indicate the presence of buyers. This should lead to a quick test of the major 50% level at $59.29, followed closely by yesterday’s high at $59.49. This is the trigger point for an acceleration to the upside with the next target zone $60.74 to $61.48.
Bearish Scenario
A sustained move under $58.91 will signal the presence of sellers. This could trigger a break into the short-term Fibonacci level at $57.73, followed by the minor bottom at $57.58. This is the trigger point for an acceleration to the downside with $53.93 the next major downside target.