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Crude Oil Price Update – Momentum Shifts to Downside on Trade Through $55.57

By:
James Hyerczyk
Published: Mar 4, 2019, 12:40 UTC

Based on the early price action, the direction of the April WTI crude oil futures contract on Monday is likely to be determined by trader reaction to an uptrending Gann angle at $56.02.

Crude Oil

U.S. West Texas Intermediate crude oil futures are trading higher shortly before the regular session opening. Short-term oversold conditions as well as signs of tightening supply are helping to underpin the market. Optimism over increased future demand because of a potential deal between the United States and China is also providing support. However, gains are likely being capped because of worries over slower U.S. factory activity and rising U.S. production.

At 12:30 GMT, April WTI crude oil is trading $56.34, up $0.53 or +0.97%.

WTI Crude Oil
Daily April WTI Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum may be getting ready to shift based on Friday’s closing price reversal top. A trade through $55.47 will confirm the chart pattern. This will shift momentum to the downside.

A trade through $55.02 will change the main trend to down. A move through $57.88 will signal a resumption of the uptrend.

The main range is $51.62 to $57.88. Its retracement zone at $54.72 to $53.98 is the primary downside target. Buyers are likely to come in on a test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the April WTI crude oil futures contract on Monday is likely to be determined by trader reaction to an uptrending Gann angle at $56.02.

Bullish Scenario

A sustained move over $56.02 will indicate the presence of buyers. This could trigger a rally into an uptrending Gann angle at $57.02. Look for the market to strengthen on a move over this angle.

Bearish Scenario

A sustained move under $56.02 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into a long-term uptrending Gann angle at $55.12, followed by the main bottom at $55.02.

If $55.02 is taken out then look for the selling to extend into $54.72 to $53.98.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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