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Crude Oil Price Update – Strengthens into Close Over $53.73, Weakens Under $53.63

Based on the early price action and the current price at $53.42, the direction of the April WTI crude oil market into the close on Friday is likely to be determined by trader reaction to the uptrending Gann angle at $53.63.
James Hyerczyk
Oil Barrels

U.S. West Texas Intermediate crude oil futures are trading lower late Friday on renewed concerns about crude demand being pinched by the economic impact of the coronavirus outbreak, while OPEC and its allies appeared to be in no hurry to make additional production cuts.

Prices were also pressured by weaker-than-expected U.S. PMI data. In the latest evidence of the economic hit, U.S. business activity in both the manufacturing and services sectors stalled in February.

At 19:26 GMT, April WTI crude oil is trading $53.42, down $0.46 or -0.85%.

Daily April WTI Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $54.66 will signal a resumption of the downtrend. The main trend will change to down on a trade through the last two swing bottoms at $49.63 and $49.50.

The minor trend is also up. A trade through $51.15 will change the minor trend to down. This will shift momentum to the downside.

The main range is $58.90 to $49.50. Its retracement zone at $54.20 to $55.31 is resistance. This zone stopped the buying at $54.66 on Thursday.

The short-term range is $49.50 to $54.66. Its retracement zone at $52.08 to $51.47 is the primary downside target.

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Daily Technical forecast

Based on the early price action and the current price at $53.42, the direction of the April WTI crude oil market into the close on Friday is likely to be determined by trader reaction to the uptrending Gann angle at $53.63.

Bullish Scenario

A sustained move over $53.63 will indicate the presence of buyers. This could lead to a test of the main 50% level at $54.20. Overtaking this level could trigger a further rally into the minor top at $54.66.

Taking out $54.66 will signal a resumption of the uptrend with the main Fibonacci level at $55.31 the next key target level.

Bearish Scenario

A sustained move under $53.63 will signal the presence of sellers. If this move continues to attract sellers then prepare for a break into the short-term retracement zone at $52.08 to $51.47. Inside this zone is an uptrending Gann angle at $51.63. Since the main trend is up, buyers could return on a test of this area.

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