Crude Oil Price Update – Trading on Weak Side of Short-Term Pivot at $53.54

Based on the early price action and the current price at $53.06, the direction of the March WTI crude oil futures contract the rest of the session is likely to be determined by trader reaction to the short-term uptrending Gann angle at $53.08.
James Hyerczyk
EIA Oil Report

Concerns over future demand are driving U.S. West Texas Intermediate crude oil futures lower on Wednesday shortly before the release of the U.S. Energy Information Administration’s weekly inventories report. The catalyst behind the selling pressure is worries about the slowing global economy. At 15:30 GMT, the EIA report is expected to show inventories increased by 1.3 million barrels.

At 15:08 GMT, March WTI crude oil futures are trading $53.06, down $0.60 or -1.12%.

Daily March WTI Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through $55.75 will signal a resumption of the uptrend. A trade through $51.33 will change the main trend to down.

The minor trend is down according to the daily swing chart. This move shifted momentum to the downside.

The short-term range is $51.33 to $55.75. Its 50% level or pivot is $53.54. Crossing to the weak side of this pivot on Wednesday has put the market in a bearish position.

The main range is $42.67 to $55.75. If the main trend changes to down then its retracement zone at $49.21 to $47.67 will become the primary downside target.

Daily Technical Forecast

Based on the early price action and the current price at $53.06, the direction of the March WTI crude oil futures contract the rest of the session is likely to be determined by trader reaction to the short-term uptrending Gann angle at $53.08.

Bullish Scenario

A sustained move over $53.08 will indicate the return of buyers. If this can generate enough upside momentum then look for a possible retest of the pivot at $53.54.

Overcoming $53.54 will indicate the buying is getting stronger with the next target a downtrending Gann angle at $54.76.

Bearish Scenario

A sustained move under $53.08 will signal the presence of sellers. This could spike the market into the next uptrending Gann angle at $52.21. This is the last potential support angle before the $51.33 main bottom.

Watch for volatility at 15:30 GMT with the release of the EIA report.

Please let us know what you think in the comments below. 

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

Top Promotions

Top Brokers

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