Crude Oil Price Update – Weekly Direction Controlled by $56.01 Gann Angle
U.S. West Texas Intermediate crude oil futures settled higher last week, rebounding from early weakness. The market was primarily supported by tighter supply due to the on-going OPEC-led production cuts and the U.S. sanctions against Venezuelan oil exports. Buyers were also encouraged by the high-level U.S.-China trade talks in Beijing. Gains may have been limited by concerns over rising U.S. production.
Last week, April WTI crude oil settled at $55.98, up $2.89 or +5.44%.
The Chicago Mercantile Exchange is closed today for President’s Day so all the price action will take place on the electronic trading platform. The market will also be closing early so we’re not expecting much movement. Normal trading hours will resume on Tuesday.
Weekly Technical Analysis
The main trend is down according to the weekly swing chart, however, momentum is trending higher.
The minor trend is up. A trade through $51.62 will change the minor trend to down. This will also shift momentum to the downside.
The market is also up 8 weeks from its last main bottom. This puts the market inside the window of time for a closing price reversal top.
The main range is $76.01 to $43.00. Its retracement zone at $59.51 to $63.40 is the primary upside target. Since the main trend is down, sellers are likely to come in on a test of this zone.
The minor retracement zone support is around $49.76 to $48.16. This zone will rise as prices rise.
Weekly Technical Forecast
Based on last week’s close at $55.98, the direction of the April WTI crude oil futures contract this week is likely to be determined by trader reaction to the downtrending Gann angle at $56.01.
Bullish Scenario
A sustained move over $56.01 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the major 50% level at $59.51.
Bearish Scenario
A sustained move under $56.01 will signal the presence of sellers. The weekly chart is wide open to the downside under this Gann angle with the next major target angle coming in at $51.00.
This article was originally posted on FX Empire
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Crude Oil Price Update – Weekly Direction Controlled by $56.01 Gann Angle
