Crude Oil Price Update – Slow Trade Puts Market in Position to Post Closing Price Reversal Top

U.S. West Texas Intermediate crude oil futures are trading flat shortly before the regular session opening and the release of the U.S. Energy Information Administration (EIA) weekly inventories report at 16:00 GMT. Traders are looking for a build of 2.9 million barrels. Late Wednesday, the American Petroleum Institute (API) weekly inventories report showed U.S. crude oil stocks rose by 1.3 million barrels to 448.5 million barrels during the week-ending February 15.

At 12:52 GMT, April WTI crude oil is trading $57.18, up $0.03 or +0.05%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early today when buyers took out yesterday’s high. The market isn’t close to changing the main trend to down, but it is in the window of time to form a potentially bearish closing price reversal top. If formed, this could lead to the start of a 2 to 3 day counter-trend correction.

Daily Technical Forecast

The market is basically trading inside yesterday’s range which indicates trader indecision.

Taking out today’s high at $57.61 will indicate the presence of buyers. If this can generate enough upside momentum then we could see a surge into the steep uptrending Gann angle at $58.62. Crossing to the strong side of this angle will put the market in an extremely bullish position. Following this angle higher could lead to a near-term test of the major 50% level at $59.51.

Now that the market has posted a higher-high, turning lower for the session will put crude oil in a position to post a closing price reversal top. The near-term target is an uptrending Gann angle. Today it comes in at $55.12.