U.S. West Texas Intermediate crude oil futures are trading higher late Friday, coming back after a four-day sell-off. Nonetheless, the market is still in a position to finish lower for the week. The catalysts behind the selling pressure were rising global supply and uncertain future demand.
On Friday, prices are being boosted by better than expected U.S. jobs data and the news that China has reached a consensus with the U.S. on the core trade concerns after a phone call among high-level trade negotiators this week.
At 17:46 GMT, December WTI crude oil is trading $55.79, up $1.61 or +2.99%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of a closing price reversal top at $56.92 on October 28.
A trade through $52.46 will change the main trend to down. A trade through $56.92 will negate the chart pattern and signal a resumption of the uptrend.
The minor trend is also up. A new minor bottom was formed at $53.71 on Friday. A trade through this bottom will change the minor trend to down. This will also shift momentum to the downside.
The short-term retracement zone at $53.91 to $53.19 is support. This zone stopped the selling at $53.71 on October 31.
The intermediate retracement zone at $55.00 to $55.97 is currently being tested. Trader reaction to this zone could determine the near-term direction of the market.
The main range is $62.74 to $50.89. Its retracement zone at $56.82 to $58.21 is the primary upside target.
Daily Technical Forecast
Given the late session upside momentum, the key area to watch into the close is $55.97 to $56.14.
A sustained move over $56.14 will indicate the buying is getting stronger. This could trigger a late session surge into $56.82 to $56.92. Taking out $56.92 could trigger an acceleration to the upside.
A sustained move under $55.97 will signal that sellers are trying to prevent an upside breakout.
This article was originally posted on FX Empire
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