Crude Oil Price Update – Main Trend Will Change to Down on Trade Through $51.44

U.S. West Texas Intermediate crude oil futures are trading lower on Friday as buyers seemed to give up on the long side after early attempts to rally failed to attract enough buyers to continue the move.

Buyers were primarily turned-off by demand worries over coronavirus variants and slow vaccine rollouts, however, losses may have been limited by the bullish sentiment being fueled by a cut in Saudi Arabian oil supply and falling U.S. oil inventories.

At 21:43 GMT, March WTI crude oil futures are trading $52.19, down $0.15 or -0.29%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $51.44 will change the main trend to down. A move through $53.94 will signal a resumption of the uptrend.

Momentum has been trending lower since the formation of the closing price reversal top on January 13 at $53.94.

The minor trend is down. This confirms the shift in momentum. A trade through $53.58 will change the minor trend to up.

The minor range is $53.94 to $51.44. Trading below its 50% level at $52.69 is an early sign of weakness. This level is new resistance.

The second minor range is $47.31 to $53.94. If the main trend changes to down then its 50% level at $50.63 will become the first target.

The short-term range is $46.30 to $53.94. Its retracement zone at $50.12 to $49.22 is the primary downside target. Buyers could step in on the first test of this area.

Short-Term Forecast

The minor trend is down, momentum is pointing lower and the market is trading on the weak side of the 50% level at $52.69.

These are all signs that the buying may be getting weaker and the selling may be getting stronger.

The price action also suggests that traders may take a run at $51.44 early next week. We’re not expecting much of a sell-off, but it may be necessary in order to attract new buyers. Our most attractive value area is $50.12 to $49.22.

For a look at all of today’s economic events, check out our economic calendar.