Crude Oil Price Update – Strengthens Over $52.48, Weakens Under $52.14

U.S. West Texas Intermediate crude oil futures are under pressure early Thursday. The catalyst behind the selling is concern over rising U.S. production after the latest government report showed it was within striking distant of an unprecedented 12 million barrels per day (bpd). On Wednesday, the U.S. Energy Information Administration said American crude oil production reached a record 11.9 million bpd in the week-ending January 11.

At 07:49 GMT, March WTI crude oil was trading $52.21, down $0.40 or -0.76%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $53.61 will change the main trend to up. A move through $50.66 will signal a resumption of the downtrend.

The short-term range is $53.61 to $50.66. Its retracement zone is $52.14 to $52.48.

The main range is $54.98 to $42.67. Its retracement zone at $50.28 to $48.83 is the next target zone.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $52.21, the direction of the March WTI crude oil market on Thursday is likely to be determined by trader reaction to the short-term retracement zone at $52.14 to $52.48.

Bullish Scenario

A sustained move over $52.48 will indicate the presence of buyers. If they can create enough upside momentum then look for a potential rally into $53.61. Taking out this level will change the main trend to up with $54.98 the next major upside target.

Bearish Scenario

A sustained move under $52.14 will signal the presence of sellers. This price is a potential trigger point for an acceleration to the downside with targets coming in at $50.66 to $50.28.