U.S. West Texas Intermediate crude oil futures are trading slightly lower, but inside yesterday’s range. The price action suggests investor indecision and impending volatility. Helping to hold the market in a range are concerns over today’s Brexit vote in the U.K. parliament and the progress of U.S.-China trade talks.
U.S. and Chinese officials have been upbeat over the negotiations, but oil traders feel the global economy will continue to weaken and demand growth pressured as long as there are existing tariffs. Additionally, government data shows that professional traders have been aggressively betting on the short side of the market since the middle of September.
At 12:19 GMT, December WTI crude oil futures are trading $53.83, up $0.32 or +0.60%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through $52.46 will reaffirm the downtrend. The main trend will change to up on a move through the $54.99 main top.
The minor trend is up. This is generating some upside momentum. Taking out $54.69 will reaffirm the minor trend.
The minor range is $50.89 to $54.99. Its 50% level or pivot at $52.94 is providing support.
The short-term range is $59.11 to $50.89. Its retracement zone at $55.00 to $55.97 is resistance.
Daily Technical Forecast
Based on the early price action and the current price at $53.83, the direction of the December WTI crude oil futures contract the rest of the session on Tuesday is likely to be determined by trader reaction to the pivot at $52.94.
A sustained move over $52.94 will indicate the presence of buyers. Overcoming the uptrending Gann angle at $54.14 will indicate the buying is getting stronger. This could trigger a further rally into the minor top at $54.69, followed by the main top at $54.99 and a 50% level at $55.00.
A sustained move under $52.94 will signal the presence of sellers. The first target is an uptrending Gann angle at $52.52, followed closely by the main bottom at $52.46.
If $52.46 fails then look for the selling to possibly extend into the next uptrending Gann angle at $51.70. This is the last potential support angle before the $51.40 minor bottom and the main bottoms at $50.89 and $50.33.
This article was originally posted on FX Empire
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