Crude Oil Price Update – Uptrend Was Reaffirmed on Trade Through $57.84; Fib Level Support at $57.36
U.S. West Texas Intermediate crude oil futures are trading higher late in the session on Friday after comments from a top U.S. official raised optimism for a U.S.-China trade deal, triggering a solid intraday reversal to the upside. Gains, however, were limited by lingering concerns over demand growth due to a potential slowdown in the global economy.
At 20:04 GMT, January WTI crude oil is at $57.86, up $0.98 or +1.72%.
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U.S. Commerce Secretary Wilbur Ross said in an interview on Fox Business Network on Friday that there was a very high probability the United States would reach a final agreement on a phase one trade deal with China.
“We’re down to the last details now,” Ross said.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was confirmed on Friday when buyers took out the previous main top at $57.87. The new main bottom is $55.77. A trade through this level will change the main trend to down.
The minor trend is also up. A trade through $56.53 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 $56.08 to $57.36 is controlling the near-term direction of the market. Holding above this zone will continue to give the market an upside bias.
Daily Technical Forecast
The direction of the market into the close is likely to be determined by trader reaction to the main Fibonacci level at $57.36.
Bullish Scenario
A sustained move over $57.36 will indicate the buying is getting stronger. This could trigger an extension of the rally into an uptrending Gann angle at $58.44, followed by a downtrending Gann angle at $58.73.
Bearish Scenario
A sustained move under $57.36 will signal the presence of sellers. This could trigger a retest of the uptrending Gann angle at $56.59 that stopped the selling earlier in the session.