Crude Oil Price Update – Daily Trend Changes to Up on Trade Through $54.99

Based on the early price action and the current price at $53.94, the direction of the August WTI crude oil futures contract the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at $54.03.
James Hyerczyk
WTI Crude Oil

U.S. West Texas Intermediate crude oil futures are trading sharply higher late Tuesday after President Trump said he would hold an extensive meeting with Chinese President Xi Jinping at the G-20 summit in Japan later this month.

“Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting,” Trump tweeted.

Some traders are treating the news as a rumor since China has not confirmed a meeting would take place. It they do confirm then the market could extend its stellar gains.

Later today, traders will get a chance to react to the latest weekly inventories report from the American Petroleum Institute. Traders are looking for a 1.5 million barrel draw down.

At 17:07 GMT, August WTI crude oil futures are trading $53.94, up $1.77 or +3.41%.

Daily August WTI Crude Oil

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $54.99 will change the main trend to up. A move through $50.98 and $50.79 will signal a resumption of the downtrend.

The short-term range is $50.79 to $54.99. Its retracement zone at $52.89 to $52.39 is controlling the direction of the market. This zone is new support.

The main range is $64.03 to $50.79. If the trend changes to up then its retracement zone at $57.41 to $58.97 will become the primary upside target.

Daily Technical Forecast

Based on the early price action and the current price at $53.94, the direction of the August WTI crude oil futures contract the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at $54.03.

Bullish Scenario

A sustained move over $54.03 will indicate the presence of buyers. If this move generates enough upside momentum then look for a possible test of the main top at $54.99. Taking out this level will change the main trend to up. This could trigger an eventual rally into the 50% level at $57.41.

Bearish Scenario

A sustained move under $54.03 will signal the presence of sellers. This could lead to a labored break into a series of potential support levels at $53.04, $52.89, $52.39 and $51.92.


The current set up indicates two breakouts to the upside are possible if buyers come in strong. The first breakout price is $54.03, followed by $54.99.

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.