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Crude Oil Price Update – Strengthens Over $59.49, Weakens Under $57.58

James Hyerczyk

U.S. West Texas Intermediate crude oil futures are trading slightly higher on Friday, shortly before the regular session opening. The market has been trading sideways the last three session after posting a more than 10% rally on Monday and a 5% drop on Tuesday. Nonetheless, it’s still in a position to post a more than 6% gain for the week on the back of elevated tensions in the Middle East.

At 09:42 GMT, November WTI crude oil futures are trading $58.66, up $0.47 or +0.79%.

The gains this week are the risk premium traders have placed on the market just in case the Saudis can’t repair their oil production facilities in a timely manner.

Daily November WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A move through $63.89 will signal a resumption of the uptrend. The main trend will change to down on a trade through $53.93.

The minor trend is also up. A trade through $57.58 will change the minor trend to down. This will also shift momentum to the downside.

The major retracement zone is $59.29 to $62.64. Its retracement zone is controlling the longer-term direction of the market.

The main range is $53.93 to $63.89. Its retracement zone at $58.91 to $57.73 is acting like support.

The short-term range is $63.89 to $57.58. Its retracement zone is a potential upside target.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $58.66, the direction of the November WTI crude oil futures contract the rest of the session on Friday is likely to be determined by trader reaction to the main 50% level at $58.91.

Bullish Scenario

Taking out and sustaining a rally over $58.91 will indicate the presence of buyers. This should lead to a quick test of the major 50% level at $59.29, followed closely by yesterday’s high at $59.49. This is the trigger point for an acceleration to the upside with the next target zone $60.74 to $61.48.

Bearish Scenario

A sustained move under $58.91 will signal the presence of sellers. This could trigger a break into the short-term Fibonacci level at $57.73, followed by the minor bottom at $57.58. This is the trigger point for an acceleration to the downside with $53.93 the next major downside target.

This article was originally posted on FX Empire