U.S. West Texas Intermediate crude oil futures are set to finish Thursday’s shortened session higher after government inventory data showed a smaller-than-forecast decline. According to the U.S. Energy Information Administration, U.S. commercial crude inventories decreased by 1.1 billion barrels from the previous week.

The drawdown was smaller than the forecast so position-squaring ahead of Thursday’s holiday may have also been behind the price action. Furthermore, some investors feel that Tuesday’s steep sell-off may have been overdone. Also providing support was the OPEC-led plan to reduce production. Gains were likely limited by concerns over lower demand due to a weakening global economy.

At 16:51 GMT, August WTI crude oil is trading $56.81, up $0.56 or +1.00%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Tuesday when sellers took out $57.75. The main trend will change to up on a trade through $60.28.

The main range is $66.22 to $50.79. Its retracement zone at $58.50 to $60.32 is resistance.

The intermediate range is $64.03 to $50.79. Its retracement zone at $57.41 to $58.97 is also resistance.

The short-term range is $50.79 to $60.28. Its retracement zone at $55.54 to $54.42 is the primary downside target. Buyers could come in on a test of this zone in an effort to form a secondary higher bottom.

Daily Swing Chart Technical Forecast

The market is set to close between support and resistance. This means the next move will be determined by momentum. Buy strength or sell weakness are the issue.

On the upside, the first target is the 50% level at $57.41. This is a potential trigger point for an acceleration into $58.50.

On the downside, the first target is the 50% level at $55.54. This is followed by the Fibonacci level at $54.42.