U.S. West Texas Intermediate crude oil futures spiked higher on Tuesday, supported by hopes that the U.S.-China trade deal will bolster oil demand in 2020 and expectations of lower demand in today’s American Petroleum Industry (API) weekly inventories report, due to be released at 21:30 GMT. The supply report from the API is expected to show U.S. crude inventories probably fell last week.
At 21:14 GMT, February WTI crude oil is trading $60.80, up $0.66 or +1.10%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier on Tuesday when buyers took out Monday’s high at $60.39. This also put the market on the strong side of the September main top at $60.37.
The main trend will change to down on a trade through $54.75. This is highly unlikely, but the prolonged move up in terms of price and time has put the market inside the window of time for a potentially bearish closing price reversal top.
The minor trend is also up. A trade through $57.62 will change the minor trend to down. This will also shift momentum to the downside.
The main range is $63.87 to $50.24. Its retracement zone at $58.66 to $57.06 is support. Trading on the strong side of this zone is helping to generate the strong upside bias.
A bullish API report will likely trigger a rally into the downtrending Gann angle at $61.26. Sellers could come in on the first test of this angle. Taking it out could trigger an acceleration to the upside with the next targets another downtrending Gann angle at $62.57 and a main top at $62.66. These are the last potential resistance angles before the $63.87 main top.
A bearish API report could trigger a wave of profit-taking. If this move generates enough downside momentum then an uptrending Gann angle at $59.25 will become the primary upside target.
This article was originally posted on FX Empire
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