Crude Oil Price Update – Upside Momentum Increases Over $53.79 with $54.32 Next Major TarqetsBased on the early price action and the current price at $54.00, the direction of the March WTI crude oil futures market the rest of the session is likely to be determined by trader reaction to the long-term downtrending Gann angle at $53.79.
U.S. West Texas Intermediate crude oil futures are up for a second session, helped by concerns about supply disruptions in reaction to the U.S. sanctions on Venezuela’s oil industry, increased demand for higher risk and optimism at the start of the trade talks between the United States and China. However, gains are likely being limited by worries over increasing U.S. production ahead of today’s U.S. Energy Information Administration’s (EIA) inventories report at 15:30 GMT.
At 13:44 GMT, March WTI crude oil futures are trading $54.00, up $0.69 or +1.29%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through $54.32 will signal a resumption of the uptrend. This could trigger a surge into the December 4 top at $54.98. The main trend will change to down on a trade through $51.33.
The minor trend is also up. It turned up earlier today when buyers took out the previous minor top at $53.94. This also shifted momentum to the upside.
The short-term range is $50.66 to $54.32. Its 50% level or pivot at $52.49 is controlling the direction of the market today.
Daily Technical Forecast
Based on the early price action and the current price at $54.00, the direction of the March WTI crude oil futures market the rest of the session is likely to be determined by trader reaction to the long-term downtrending Gann angle at $53.79.
A sustained move over $53.79 will indicate the presence of buyers. If this creates enough upside momentum then look for a test of the main top at $54.32.
Taking out $54.32 will signal a resumption of the uptrend. Crossing to the strong side of the uptrending Gann angle at $54.67 will put the market in a bullish position, setting up a test of another main top at $54.98. This is another trigger point for an acceleration to the upside.
A sustained move under $53.79 will signal the return of sellers. If this move creates enough downside momentum then look for a potential break into the support cluster at $52.61 to $52.49.
The market turns bearish under $52.49.