Crude Oil Price Update – Inside Trading Range Indicates Traders are Waiting for News – Yahoo Finance

Posted on February 5, 2020

U.S. West Texas Intermediate crude oil futures are trading higher on Wednesday shortly before the regular session opening and the release of the U.S. Energy Information weekly inventories report at 15:30 GMT.

The market is getting a boost from reports that OPEC and its allies are considering further output cuts to counter a potential decline in global oil demand due to the economic impact from China’s fast-spreading coronavirus.

Helping to keep a lid on prices is a report from the American Petroleum Institute (API). Late Tuesday, the API said crude oil inventory rose 4.18 million barrels during the week-ending January 31. Analysts were looking for a 2.8-million barrel build.

At 10:27 GMT, March WTI crude oil futures are trading $50.71, up $1.09 or +2.22%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $49.31 will signal a resumption of the downtrend. The main trend will change to up on a move through the last swing top at $54.37.

The short-term range is $54.37 to $49.31. Its 50% level at $51.84 is the first upside objective.

Daily Technical Forecast

The market is likely to start the regular session inside yesterday’s range. This indicates investor indecision and impending volatility. The uncertainty is being fueled by today’s EIA report and whether OPEC+ will approve additional protection cuts.

Bullish Scenario

Taking out yesterday’s high at $51.55 will be the first sign of strength. However, buyers may run into resistance at $51.84. Overtaking this level could trigger a rally into an uptrending Gann angle at $52.80.

Overcoming $52.80 will indicate the buying is getting stronger with the next target angle coming in at $54.27.

Bearish Scenario

Taking out yesterday’s low at $49.31 will signal a resumption of the downtrend. The first target is a downtrending Gann angle at $48.77. Crossing to the weak side of this angle will put the market in a bearish position.

This article was originally posted on FX Empire