Crude Oil Price Update – Buyers Looking for Value Zone

September West Texas Intermediate Crude Oil futures are trading slightly lower shortly before the regular trading session. On Thursday, the market formed a potentially bearish closing price reversal top. This move was confirmed earlier in the session, triggering the start of a possible 2 to 3 day sell-off.

Technical

The main trend is up according to the daily swing chart. However, momentum is trending lower.

A trade through $50.43 will signal a resumption of the uptrend. This would put the market in a position to challenge the next main top at $52.38.

The main range is $52.38 to $42.27. Its retracement zone is $47.33 to $48.52. The market is currently testing this zone. Regaining $48.52 will give the market a slight upside bias today. Taking out $47.33 will signal that the selling is getting stronger.

The short-term range is $45.40 to $50.43. Its retracement zone at $47.92 to $47.32 essentially fall inside the market retracement zone. We could see a technical bounce if this zone is tested. Since the main trend is up. Buyers are likely to come in to defend the trend.

Forecast

Based on the current price at $48.48, the key levels to watch are $48.52 and $47.92.

A sustained move over $48.52 will indicate the presence of buyers. This could trigger a move into a pair of Gann angles at $48.90 and $49.01. Overtaking $49.01 will indicate that the buying is getting stronger. This would put the market in a position to erase yesterday’s down move.

A sustained move under $47.92 will signal the presence of sellers. This could trigger a quick break into a pair of retracement levels at $47.33 and $47.32, followed by a short-term uptrending angle at $47.15 and a long-term uptrending angle at $46.77.

Basically, look for a bullish tone to develop on a sustained move over $48.52 and a bearish tone on a sustained move under $47.92.