Crude Oil Price Update – Rangebound: Bullish Over $47.25, Bearish Under $46.52

October West Texas Intermediate crude oil futures are trading lower shortly before the regular session opening, but the market is coming back from early session weakness. Crude is currently trading inside yesterday’s wide range, suggesting investor indecision and impending volatility.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through $45.58 will signal a resumption of the downtrend. The main trend will change to up on a move through $48.91.

The major support zone is $46.52 to $45.57. A long-term uptrending angle passes through this zone at $45.71. This area and this angle stopped the selling on Thursday at $45.58.

The short-term range is $48.91 to $45.58. Its retracement zone at $47.25 to $47.64 is the first upside target. This zone was tested on Thursday.

The main range is $50.51 to $45.58. Its retracement zone at $48.05 to $48.63 is the next upside target.

Forecast

Based on the current price at $47.14 and the earlier price action, look for a bearish tone under $46.52 and a bullish tone over $47.25.

A sustained move under $46.52 will signal the presence of sellers with the target area $45.71 to $45.58. If $45.58 fails then look for an acceleration to the downside with $44.05 the next likely target.

A sustained move over $47.25 will indicate the presence of buyers. This could lead to the start of a labored rally with a resistance cluster at $47.64 the first target. Since the trend is down, sellers could come in on a test of this cluster.

Overtaking $47.64 could trigger a spike into $48.05, followed by an acceleration into $48.63. This is followed by the main top at $48.91.