Crude Oil Price Update – Bullish News Could Send Market into $57.62

U.S. West Texas Intermediate crude oil futures are trading flat at the mid-session. However, the market is recovering from an early session setback. Helping to underpin prices are the OPEC-led supply cuts and the U.S. sanctions against Venezuelan exports. Uncertainty over U.S.-China trade relations, concerns over lower future demand and soaring U.S. production may be keeping a lid on prices. Look for volatility late in the session following the release of the American Petroleum Institute’s weekly inventories report.

At 15:27 GMT, April WTI crude oil is trading $56.65, up $0.20 or +0.34%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The price action reaffirmed the uptrend. The uptrend is safe, but traders should start watching for a potentially bearish closing price reversal top. A trade below the previous main top at $56.05 will be a sign of weakness.

The minor trend is also up. A move through $53.51 will change the minor trend to down. This will also shift momentum to the downside.

Daily Technical Forecast

Although the market has recovered all of its earlier losses, the buying looks a little tentative. If the buying pressure should increase then look for a potential rally into a steep uptrending Gann angle at $57.62. Crossing to the strong side of this angle will put the market in a bullish position. The next major upside target is a 50% level at $59.51.

On the downside, the nearest support angle comes in at $54.62.

The price action also suggests that traders are waiting for fresh news.