Yahoo Finance Crude Oil Price Update – Main Trend Changed to Up on Trade Through $54.39 Swing Top
U.S. West Texas Intermediate crude oil futures are trading higher during the extended trading period on Friday, putting it in a position to post its first weekly gain since early January. Market sentiment improved all week after a massive sell-off drove prices to a multi-month low as investors bet on OPEC+ increasing their production cuts. The price action also suggests that traders believe the economic impact of the coronavirus would be short-lived.
At 21:36 GMT, April WTI crude oil futures are trading $52.40, up $0.74 or +1.43%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The main trend turned up earlier on Friday when buyers took out the last main top at $52.34. The main trend will change to down on a move through the last two main bottoms at $49.63 and $49.50.
The short-term range is $54.39 to $49.50. Its retracement zone at $51.95 to $52.52 is the first upside target. This area is currently being tested.
The intermediate range is $58.90 to $49.50. Its retracement zone at $54.20 to $55.31 is the next upside target along with the main top at $54.39.
Short-Term Outlook
The trend changed to up on Friday when the market crossed a swing top at $52.34. Crossing to the strong side of steep downtrending Gann angle at $51.99 also indicated increasing buying power. Overcoming the Fibonacci level at $52.52 will be a third indication that the buying is greater than the selling at current price levels.
Based on the current set-up, the Fib level at $52.52 is a trigger point for a potential acceleration to the upside. If strong buyers come in on the move then look for a surge into the intermediate 50% level at $54.20, followed by the next main top at $54.39.
On the downside, support is clustered at $51.99, $51.95 and a short-term uptrending Gann angle at $51.63.
If the uptrending Gann angle at $51.63 fails as support then look for a further pullback into a pair of uptrending Gann angles at $50.63 and $50.13. The latter is the last potential support angle before the $49.63 and $49.50 main bottoms.
This article was originally posted on FX Empire
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