Crude Oil Price Update – Trend Changed to Up; First Target $57.41

Based on the early upside action and the strong momentum, the direction of the August WTI crude oil market the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at $56.29. The breakout over $54.99 confirms the minor double-bottom. Simple analysis indicates that $59.19 is another potential upside target.
James Hyerczyk
WTI Crude Oil

U.S. West Texas Intermediate crude oil futures are trading higher on Thursday for a number of reasons. These reasons include a larger-than-expected draw in U.S. stockpiles and a weaker U.S. Dollar. Both affect the demand side of the equation. On the supply side, OPEC and its allies are expected to extend the program to cut production, trim excess inventory and stabilize prices. Additionally, escalating tensions in the Middle East after Iran shot down a U.S. drone are raising concerns over a possible supply disruption.

At 12:05 GMT, August WTI crude oil futures are trading $55.84, up $1.87 or +3.46%.

Daily August WTI Crude Oil

Daily Technical Analysis

The main trend is up according to the daily swing chart. The main trend turned up earlier in the session when buyers took out the swing top at $54.99. The uptrend is being supported by a pair of main bottoms at $50.98 and $50.79.

The main range is $64.03 to $50.79. Its retracement zone at $57.41 to $58.97 is the primary upside target. Short-sellers and profit-takers could show up on a test of this area.

Daily Technical Forecast

Based on the early upside action and the strong momentum, the direction of the August WTI crude oil market the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at $56.29.

Bullish Scenario

Overtaking and sustaining a rally over $56.29 will indicate the buying is getting stronger. If this creates enough upside momentum then look for the rally to possibly extend into the 50% level at $57.41. This is followed by a downtrending Gann angle at $58.53 and a Fibonacci level at $58.97.

Bearish Scenario

The inability to overcome $56.29 will not be bearish per se, but it will indicate the buying is getting weaker, or the selling is getting stronger. This could trigger a break back into the uptrending Gann angle at $53.54.

Since the main trend is up, buyers could come in on a test of $53.54, but if it fails then look for the selling to possibly extend into $52.17.

Overview

The breakout over $54.99 confirms the minor double-bottom. Simple analysis indicates that $59.19 is another potential upside target.

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