Crude Oil Price Update – In Position to Challenge Major 50% Level at $59.63

Based on the early price action, the direction of the May WTI crude oil futures contract on Thursday is likely to be determined by trader reaction to the steep uptrending Gann angle at $58.87.
James Hyerczyk
Daily May WTI Crude Oil

U.S. West Texas Intermediate crude oil futures are trading higher on Thursday, helped by reports of tightening global supplies. The catalysts behind the market’s strength are the OPEC-led production cuts and the U.S.-led sanctions against Iran and Venezuela.

An unexpected plunge in U.S. crude oil inventories and production is also providing support. According to the U.S. Energy Information Administration, U.S. commercial crude inventories fell last week as refineries hiked output. U.S. oil production also fell by 100,000 barrels per day (bpd) to 12 million bpd.

At 13:54 GMT, May WTI crude oil futures are trading $58.88, up $0.29 or +0.49%.

Daily May WTI Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart. Today’s earlier price action reaffirmed the uptrend. Since the market is testing a new high for the year, traders should watch for a potentially bearish closing price reversal top chart pattern. This won’t change the trend to down, but it could signal the start of a 2 to 3 day correction.

On the upside, the major target is the long-term 50% to 61.8% retracement zone at $59.63 to $63.45.

Daily Technical Forecast

Based on the early price action, the direction of the May WTI crude oil futures contract on Thursday is likely to be determined by trader reaction to the steep uptrending Gann angle at $58.87.

Bullish Scenario

Overtaking and sustaining a rally over $58.87 will indicate the presence of buyers. This could trigger a spike into the major 50% level at $59.63. Overcoming this level will indicate the buying is getting stronger.

Bearish Scenario

A sustained move under $58.87 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the next uptrending Gann angle at $56.87 over the near-term.

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.