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Crude Oil Price Update – Bullish API Report Targets $61.25 and Beyond

James Hyerczyk

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 February WTI Crude Oil

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.

Daily February WTI Crude Oil

Short-Term Outlook

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