Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk

U.S. West Texas Intermediate crude oil futures are trading higher on Wednesday, shortly after the regular session opening and the release of the latest government inventories report. The price action is being fueled by optimism that the worst of the demand crisis caused by the coronavirus outbreak may have peaked.

At 13:31 GMT, April WTI crude oil is trading $51.28, up $1.11 or +2.19%.

Late Tuesday, the American Petroleum Institute (API) said U.S. crude oil inventories rose by 6 million barrels during the week-ending February 7 to 438.9 million barrels. This was higher than the 3 million barrel forecast.

At 15:30 GMT, the U.S. Energy Information Administration (EIA) will release its weekly inventories report. It is expected to show a 3.0 million barrel build. Given the current upside momentum, a better-than-expected oil report could trigger an acceleration to the upside.

Daily April WTI Crude Oil

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $49.63 will signal a resumption of the downtrend. A move through $52.34 will change the main trend to up.

The minor range is $52.34 to $49.63. Its 50% level or pivot comes in at $50.99.

The short-term range is $54.39 to $49.50. Its retracement zone at $51.95 to $52.52 is the next potential upside target.


Daily Technical Forecast

Based on the early price action and the current price at $51.28, the direction of the April WTI crude oil market the rest of the session on Wednesday is likely to be determined by trader reaction to the pivot at $50.99.

Bullish Scenario

A sustained move over $50.99 will indicate the presence of buyers. If this creates enough upside momentum then look for a move into the 50% level at $51.95. This is followed by a Fibonacci level at $52.52 and a downtrending Gann angle at $52.99. This price is a potential trigger point for an acceleration into $54.20.

Bearish Scenario

A sustained move under $50.99 will signal the presence of sellers. The first target is a downtrending Gann angle at $50.40. Crossing to the weak side of this angle could trigger a break into $59.63, followed by $49.50.

Side Notes

A bullish EIA report could trigger a surge into $51.95 to $52.52.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.