Crude Oil Price Update – Could Be Rangebound Until API Report is Released

U.S. West Texas Intermediate crude oil futures are trading nearly unchanged at the mid-session as traders prepare for the release of the American Petroleum Institute’s (API) weekly inventories data, due to be released at 20:30 GMT. Traders are looking for a draw of about 500,000 barrels.

Earlier today, the U.S. producer price report came in as expected, raising concerns over muted inflation and future crude oil demand. Continuing to underpin prices is the hope of an extension of the OPEC-led deal to cut production and stabilize prices.

At 19:09 GMT, July WTI crude oil is trading $53.36 up $0.01 or +0.01%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum shifted to the upside with the formation of a weekly closing price reversal bottom.

A trade through $50.60 will signal a resumption of the downtrend.

The market is currently trading inside a retracement zone, bounded by $55.32 and $52.70. Trader reaction to this zone should determine the short-term direction of the market.

The main range is $63.96 to $50.60. Its retracement zone at $57.28 to $58.86 is the primary upside target.

Daily Technical Forecast

Based on the current price at $53.38, traders aren’t leaning in one particular direction.

On the downside, the nearest support is a Fib level at $52.70 and an uptrending Gann angle at $52.60. If $52.50 fails then look for the selling to possibly extend into the next uptrending Gann angle at $51.60.

Overtaking the uptrending Gann angle at $54.60 will be a sign of strength. This could lead to a rally into $55.32.

The 50% level at $55.32 is the trigger point for a surge into the downtrending Gann angle at $56.46.