Crude Oil Price Update – Sellers at $58.16 Could Drive Price into $57.65

February West Texas Intermediate crude oil futures are trading lower shortly before the regular session opening, after giving back earlier gains. The market had been supported by the North Sea outage and another decline in U.S. inventories. Today’s weakness is likely profit-taking and position-squaring ahead of the long-holiday week-end after a week-long rally.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending higher since December 14. A trade through $58.60 will change the main trend to up.

The main range is $58.60 to $56.11. The market is trading over its retracement zone at $57.65 to $57.36, giving it an upside bias. These levels are new support.

The key support level is $57.07. This major pivot is controlling the longer-term direction of the market.

Daily Technical Forecast

Based on the current price and earlier price action, the direction of the February WTI crude oil market today is likely to be determined by trader reaction to a downtrending Gann angle at $58.16. This angle stopped the rally earlier in the session.

A sustained move under $58.16 will indicate the presence of sellers. This could trigger a steep drop into the next downtrending Gann angle at $57.73, followed by the Fibonacci level at $57.65. This price is another trigger point for an acceleration into a support cluster at $57.36.

Overtaking $58.16 and sustaining the rally will signal the presence of buyers. This could trigger a rally into a downtrending Gann angle at $58.38. This is the last potential resistance angle before the $58.60 main top.