U.S. West Texas Intermediate crude oil futures are trading higher late Friday, but well off their high. However, the market is still trading higher for the week. Prices surged early as fears of a U.S. recession eased in response to yesterday’s stronger than expected retail sales report. A bearish report from the Organization of Petroleum Exporting Countries (OPEC) helped weigh on prices throughout the session.
At 20:00 GMT, October WTI crude oil is trading $54.81, up $0.39 or +0.72%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through $57.40 will change the main trend to up. A move through $50.50 will signal a resumption of the downtrend.
The minor trend is also down. A new minor bottom at $53.77 was formed on Thursday.
The short-term range is $50.50 to $57.40. Its retracement zone at $53.95 to $53.14 is support. This zone stopped the selling at $53.77 on August 15.
The main range is $60.93 to $50.50. Its retracement zone at $55.72 to $56.95 is controlling the near-term direction of the market. It’s currently acting like resistance.
Daily Technical Forecast
On the upside, late session resistance is the main 50% level at $55.72 and a steep downtrending Gann angle at $55.90. The latter is a potential trigger point for an acceleration into the next downtrending Gann angle at $56.65, followed by the main Fibonacci level at $56.95. This is the last potential resistance before the $57.40 main top.
On the downside, the first target is the downtrending Gann angle at $54.43. This is followed by an uptrending Gann angle at $54.00 and the short-term 50% level at $53.95. Taking out the minor bottom at $53.77 could trigger an acceleration to the downside with the short-term 50% level at $53.14, the next downside target.
This article was originally posted on FX Empire
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