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. 

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