U.S. West Texas Intermediate crude oil futures are trading slightly lower on Monday, but trying to claw back those earlier losses. Escalating tensions in the Middle East helped drive prices higher earlier in the session, but a bearish German Flash Manufacturing PMI report helped erase all of those earlier gains, driving prices into their low of the session.
At 14:23 GMT, November WTI crude oil futures are trading $58.15, up $0.06 or +0.12%.
Helping to turn the market around was a better than expected U.S. Flash Manufacturing PMI report. It came in at 51.0, beating the 50.3 forecast.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum is trending lower. The main trend will change to down on a trade through $53.93. A move through $63.89 will signal a resumption of the uptrend.
The minor trend is down. This is why the momentum is trending lower. It turned down earlier in the session when sellers took out $57.58. The main trend will change to up on a move through $59.49. This will shift momentum to the upside.
The short-term range is $53.93 to $63.89. Its retracement zone at $58.91 to $57.73 is currently being tested. Buyers are trying to form a secondary higher bottom.
The major range is $59.29 to $62.64. This zone is controlling the longer-term direction of the market.
Daily Technical Forecast
Based on the early price action and the current price at $58.15, the direction of the November WTI crude oil futures contract the rest of the session on Monday is likely to be determined by trader reaction to the uptrending Gann angle at $57.43.
A sustained move over $57.43 will indicate the presence of buyers. This could lead to a labored rally with potential targets coming in at $58.89, $58.91, $59.29 and $59.49.
The trigger point for an acceleration to the upside is $59.49. This could trigger an acceleration to the upside with the next target angle coming in at $61.39.
A sustained move under $57.43 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next target angle coming in at $55.68.
Look for a choppy trade inside $57.73 to $59.29.
This article was originally posted on FX Empire
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