FXEMPIRE
All

Crude Oil Price Update – Holding Support Zone at $54.56 to $53.60

Based on the earlier price action and the current price at $54.69, the direction of November WTI crude oil futures contract into the late session close is likely to be determined by trader reaction to the short-term 50% level at $54.56.
James Hyerczyk
WTI Crude Oil

U.S. West Texas Intermediate crude oil futures are trading lower, but off their lows, following a second day of heavy selling pressure. Oil prices were hit on two fronts early Thursday. After a lower opening was fueled by worries that President Trump would ease up on the sanctions against Iran, prices fell further after OPEC and its allies failed to make a decision on deeper supply cuts.

At 17:40 GMT, November WTI crude oil futures are trading $54.69, down $0.97 or -1.74%.

Oil came under further pressure after the European Central Bank (ECB) made a couple of major moves to prop up Euro Zone growth, including cutting is deposit rate to a record low -0.5% from -0.4% and restarting its bond purchases of 20 billion Euros a month from November.

Also weighing on prices were bearish comments from the International Energy Agency (IEA). It said surging U.S. output would make balancing the market “daunting” in 2020.

Daily November WTI Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on September 10 at $58.64.

The main trend will change to down on a trade through $52.71. A move through $58.64 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is down. It changed to down on Thursday when sellers took out the swing bottom at $54.75. This move also confirmed the shift in momentum to down.

The main range is $63.52 to $50.48. Its retracement zone at $57.00 to $58.54 is resistance. This area stopped the rally at $58.64 on September 10.

The short-term range is $50.48 to $58.64. Its retracement zone at $54.56 to $53.60 is potential support. This zone stopped the rally earlier today at $53.93.

Daily Technical Forecast

Based on the earlier price action and the current price at $54.69, the direction of November WTI crude oil futures contract into the late session close is likely to be determined by trader reaction to the short-term 50% level at $54.56.

Bullish Scenario

A sustained move over $54.56 will indicate the presence of buyers. We’re not looking for much of an intraday retracement, however.

Bearish Scenario

A sustained move under $54.56 will signal renewed selling pressure. This could extend the selling into the short-term Fibonacci level at $53.60.

If $53.60 fails then look for a potential acceleration into the main bottom at $52.71. Taking out this bottom will change the main trend to down with sellers likely setting their sights on the next main bottom at $50.48.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US