Crude Oil Price Update – Direction Controlled by $51.84 Pivot

U.S. West Texas Intermediate crude oil futures are trading slightly higher on Friday after posting a small gain the previous session. Today’s early range is tight and inside Thursday range which suggests investor indecision and impending volatility.

Prices rose earlier in the session after Russia said it backs a recommendation for OPEC and its allies to deepen cuts amid contracting demand for crude as China deals with the economic impact of the coronavirus epidemic.

At 09:31 GMT, March WTI crude oil is trading $50.98, up $0.03 or +0.07%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $54.37 will change the main trend to up. A move through $49.31 will signal a resumption of the downtrend.

The short-term range is $54.37 to $49.31. Its 50% level or pivot is $51.84. This level is controlling the near-term direction of the market.

The market also continues to hover near the October 3, 2019 bottom at $50.18, which suggests the break to $49.31 earlier in the week was likely fueled by sell stops.

Daily Technical Forecast

Based on the early price action and the current price at $50.98, the direction of the March WTI crude oil market the rest of the session on Friday is likely to be determined by trader reaction to the 50% level at $51.84.

Bearish Scenario

A sustained move under $51.84 will indicate the presence of sellers. This could trigger a pullback into a minor 50% level at $50.76, followed by the main bottom at $49.31. This price is a potential trigger point for an acceleration to the downside.

Bullish Scenario

A sustained move over $51.84 will signal the presence of buyers. If this move can generate enough upside momentum then look for a possible surge into an uptrending Gann angle at $52.88, followed by a downtrending Gann angle at $53.27.