FXEMPIRE
All
Corona Virus
Stay Safe, FollowGuidance
World
12,817,771Confirmed
566,710Deaths
7,466,213Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
Crude Oil Barrels

U.S. West Texas Intermediate crude oil prices are trading higher following the release of a government report that showed a larger-than-expected draw down in U.S. supply. The news lifted prices to a new intraday high. Earlier in the session, the market was underpinned by the hope that a meeting between U.S. President Trump and China President Xi Jinping would lead to an eventual deal to end the long-standing trade dispute.

At 14:41 GMT, August WTI crude oil futures are trading $54.34, up $0.23 or +0.46%.

According to the U.S. Energy Information Administration, crude inventories fell by 3.1 million barrels during the week-ending June 14. Traders were looking for a 1.5 million barrel draw down.

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. The next upside target is a retracement zone.

A move through $50.98 will signal a resumption of the downtrend. A trade through $50.79 will reaffirm the downtrend.

The short-term range is $50.79 to $54.99. Its retracement zone at $52.89 to $52.39 is 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.

Advertisement

Daily Technical Forecast

August WTI crude oil is currently trading on the strong side of a downtrending angle at $53.53. This angle had been guiding the market lower since May 20 so crossing to its strong side has put the market in a potentially bullish position.

Based on the early price action the direction of the August WTI futures contract will likely be determined by trader reaction to the downtrending Gann angle at $53.53 and the short-term uptrending Gann angle at $53.29.

Bullish Scenario

A sustained move over $53.53 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the main top at $54.99.

Taking out $54.99 will change the main trend to up. This could trigger a breakout to the upside with the next potential target coming in at $57.41.

Bearish Scenario

Falling below $53.53 will signal the presence of sellers. Taking out $53.29 will indicate the selling is getting stronger. This could trigger a labored break into multiple levels including $52.89, $52.39 and $52.04. These are followed by $51.42, $50.98 and $50.79.

Overview

It looks as if a support base has been built so traders may take a run at $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

Trade With A Regulated Broker

  • Your capital is at risk