Crude Oil Price Update – Daily Chart Wide Open Under $53.75

December West Texas Intermediate crude oil futures are trading steady on Tuesday. The futures contract is trading near its high for the year, but gains are being limited by end-of-the-month position-squaring and concerns over increasing U.S. exports. Worries that increasing U.S. shale output will keep a lid on prices is also curtailing buying today.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $54.46 will signal a resumption of the uptrend. The next target is the April 12 top at $55.02.

Taking out yesterday’s low at $53.75 will make $54.46 a new minor top. If this move gains momentum, we could see an acceleration to the downside with the main target a support cluster at $52.67 to $52.62.

Daily Forecast

Based on the earlier trade, the direction of the crude oil market today is likely to be determined by trader reaction to the steep uptrending Gann angle at $54.37.

Overtaking and sustaining a rally over $54.37 will indicate the buying is getting stronger. This could create enough upside momentum to take out $54.46 and lead to a test of the April 12 top at $55.02.

The inability to overtake $54.37 will signal the presence of sellers. If this encourages more selling pressure then look for sellers to start looking for trigger points for an acceleration to the downside. Yesterday’s low at $53.75 may be one.

The daily chart indicates there is plenty of room to the downside under $53.75 with the next major target $52.67 to $52.62.