Crude Oil Price Update – Chart Set-Up Suggests Heightened Volatility LikelyBased on the current price at $69.58, the direction of the November WTI Crude Oil market is likely to be determined by trader reaction to $69.71 and $69.34. Look for heightened volatility following the release of the EIA inventories report.
U.S. West Texas Intermediate Crude Oil futures are trading slightly lower shortly before the regular session opening and the U.S. Energy Information Administration’s (EIA) weekly inventories report at 1430 GMT. Traders are looking for a 2.7 million barrel draw down.
At 1144 GMT, November WTI Crude Oil is trading $69.57, down $0.02 or -0.03%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through $70.89 will signal a resumption of the uptrend. The main trend will change to down on a trade through $66.67.
The minor trend is also up. A trade through $67.69 will change the minor trend to down. This will also shift momentum to the downside.
The short-term range is $66.67 to $70.89. Its retracement zone at $69.71 to $69.34 is controlling the near-term direction of the market. Crude oil is currently sitting inside this zone. Also inside this zone is a pair of Gann angles at $69.45 and $69.64.
Daily Technical Forecast
Based on the current price at $69.58, the direction of the November WTI Crude Oil market is likely to be determined by trader reaction to $69.71 and $69.34.
A sustained move over $69.34 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into a downtrending Gann angle at $70.27. Look for a technical bounce on the first test of this Gann angle.
Taking out $70.27 could trigger an acceleration to the upside with the next target angle coming in at $70.58. This is the last potential resistance angle before the $70.89 main top.
A sustained move under $69.34 will signal the presence of sellers. This could trigger an acceleration to the downside with the first target angle coming in at $68.67.
Look for heightened volatility following the release of the EIA inventories report.