FXEMPIRE
All

Crude Oil Price Update – Strengthens Over $56.29, Weakens Under $55.71

Based on the early price action and the current price at $56.56, the direction of the January WTI crude oil futures contract the rest of the session on Wednesday is likely to be determined by trader reaction to the 50% level at $56.29.
James Hyerczyk
WTI Crude Oil

U.S. West Texas Intermediate crude oil futures are trading higher early Wednesday on position-squaring ahead of the start of a meeting of OPEC and its allies to discuss whether to extend production cuts to support the market and trim global inventories. The market is also being underpinned by an industry report that showed U.S. crude stockpiles fell more than expected.

At 06:44 GMT, January WTI crude oil futures are trading $56.56, up $0.46 or +0.81%.

Daily January WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through $54.85 will change the main trend to down. A move through $58.74 will signal a resumption of the uptrend.

This week’s price action is being controlled by a series of retracement levels.

The main range is $61.48 to $50.69. Its retracement zone at $56.29 to $57.36 is controlling the longer-term direction of the market.

The short-term retracement zone is $53.84 to $58.74. Its retracement zone comes in at $56.29 to $55.71.

The intermediate range is $50.69 to $58.74. Its retracement zone at $54.72 to $53.77 is support.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $56.56, the direction of the January WTI crude oil futures contract the rest of the session on Wednesday is likely to be determined by trader reaction to the 50% level at $56.29.

Bullish Scenario

A sustained move over $56.29 will indicate the presence of buyers. If this can create enough upside momentum then look for a potential rally into the main Fibonacci level at $57.36. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under $56.29 will signal the presence of sellers. The first two downside targets are $56.08 and $55.71.

The short-term Fibonacci level at $55.71 is a potential trigger point for an acceleration to the downside with the next targets the main bottom at $54.85 and the 50% level at $54.72.

Side Notes

Today’s Energy Information Administration (EIA) report could produce some volatility. However, the price action may be limited ahead of the OPEC meeting on December 5-6.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US