Crude Oil Price Update – Close Under $53.69 Turns Market Lower for Week

U.S. West Texas Intermediate crude oil futures are trading lower on Friday, as investors express disappointment with the lack of progress in the trade talks between the United States and China. Another weak manufacturing report from China is also creating demand concerns. Traders seemed to brush aside comments from President Trump about the trade talks. He said on Thursday that he would meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal. ‘

At 13:35 GMT, March WTI crude oil is trading $53.73, down $0.06 or -0.06%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $55.37 will signal a resumption of the uptrend. The main trend will change to down on a trade through $51.33.

A trade through $53.69 will turn the market lower for the week. This could send a bearish signal to traders next week.

The short-term range is $50.66 to $55.37. Its 50% level or pivot is controlling the direction of the market today.

The main range is $42.67 to $55.37. If the main trend changes to down then look for a pullback into its retracement zone at $49.02 to $47.52.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March WTI crude oil market the rest of the session should be determined by trader reaction to the short-term pivot at $53.02.

Bullish Scenario

A sustained move over $53.02 will indicate the presence of buyers. If the buying is strong enough then look for a quick move to $54.78. Overcoming this level will mean the buying is getting stronger with $55.37 the next likely upside target.

Bearish Scenario

Taking out the pivot at $53.02 and sustaining the break will signal the presence of sellers. This could trigger an acceleration to the downside since the next major downside target comes in at $51.33.

Watch the price action and read the order flow at $53.69 later in the session. This will tell us if the market will be higher or lower next week.