U.S. West Texas Intermediate crude oil futures are trading sharply higher shortly after the regular session opening. The upside momentum is being driven by a bullish American Petroleum Institute weekly inventories report, concerns over tighter supplies due to the U.S. sanctions against Iran and expectations of a bullish U.S. Energy Information Administration weekly inventory report at 1430 GMT.
At 1209 GMT, October WTI crude oil futures are trading $67.03, up $1.19 or +1.81%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through $67.72 will change the main trend to up. A move through $63.89 will signal a resumption of the downtrend.
The minor trend is up. It turned up on Tuesday when buyers took out $65.76. This move also shifted momentum to the upside.
The main range is $71.29 to $63.89. Its retracement zone at $67.59 to $68.46 is the primary upside target. Sellers may show up on a test of this zone, however, the market may not break. It may just sit in a range.
Daily Technical Forecast
Based on the early price action, the momentum may be strong enough to send the market into the 50% level at $67.59, followed by the main top at $67.72. If the EIA report is bullish then we could see a spike through the top with $68.46 the next major upside target.
If the EIA report is bearish and prices retreat, then the first downside target will be the steep uptrending Gann angle at $65.89. This angle has been guiding the market higher for four days. If it fails then sellers could come in hard with the next target angle coming in at $64.89.