Crude Oil Price Update – Could Turn Extremely Bearish Under $52.49 if EIA Reports Huge Inventory Build

Based on the early price action and the current price at $52.24, the direction of the March WTI crude oil market the rest of the session is likely to be determined by trader reaction to the pivot at $52.49.
James Hyerczyk
Crude Oil

U.S. West Texas Intermediate crude oil futures are trading lower shortly after the regular session opening. Traders are reacting to concerns over the slowing global economy and worries about U.S.-China trade relations. Both issues will affect future demand. Traders are also responding to yesterday’s weekly American Petroleum Institute’s weekly inventories report which showed an unexpected build.

At 1319 GMT, March WTI crude oil futures are trading $52.24, down $0.38 or -0.74%.

At 1600 GMT, traders will get the opportunity to react to the latest data from the U.S. Energy Information Administration’s weekly inventories report. It is expected to show a draw of 200,000 barrels. However, this could change in light of the API report.

Daily March WTI Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum may be shifting to the downside with the formation of the closing price reversal top at $54.32 on January 22. A trade through this level will negate the formation and signal a resumption of the uptrend. A move through $50.66 will change the main trend to down.

The short-term range is $50.66 to $54.32. Its 50% level or pivot at $52.49 is controlling the price action today.

The main range is $42.67 to $54.32. If the trend changes to down then its retracement zone at $48.59 to $47.19 will become the primary downside target.

Daily Technical Forecast

Based on the early price action and the current price at $52.24, the direction of the March WTI crude oil market the rest of the session is likely to be determined by trader reaction to the pivot at $52.49.

Bullish Scenario

A sustained move over $52.49 will indicate the presence of buyers. This could fuel a labored rally with targets at $52.67 and $52.86.

The market could climb over $52.86 with the next potential targets coming in at $53.92 and $54.32.

Bearish Scenario

A sustained move over $52.49 will signal the presence of sellers. The daily chart is wide open to the downside under this level if selling volume can increase. This could trigger a move into a downtrending Gann angle at $50.73 then $50.66.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.