Note

Crude Oil Price Update – A Close Under $47.80 Will Indicate Sellers Are Taking Control

· Views 137

U.S. West Texas Intermediate crude oil futures are edging higher shortly before the close on Wednesday after a government report showed crude inventories fell by 6.1 million barrels in the week-ending December 25, exceeding analysts’ expectations in a Reuters poll for a 2.6 million-barrel drop, as crude oil exports rose. Exports rose to 3.6 million bpd from 3.1 million bpd a week earlier.

At 19:54 GMT, February WTI crude oil futures are trading $48.30, up $0.30 or +0.63%.

Gains were likely capped by the light holiday volume and worries ahead of the OPEC+ summit on January 4. The group is expected to approve of a 500,000 barrel per day increase in output in January and February.

Crude Oil Price Update – A Close Under $47.80 Will Indicate Sellers Are Taking Control
Daily February WTI Crude Oil

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A move through $49.43 will signal a resumption of the uptrend. The main trend will change to down on a trade through $46.16.

The minor range is $49.43 to $46.16. Its 50% level at $47.80 is support. The market tested this level earlier in the day.

The major support is the Fibonacci level at $46.04.

Daily Swing Chart Technical Forecast

The early price action indicates the direction of the February WTI crude oil market into the close will be determined by trader reaction to $47.80.

Bullish Scenario

A sustained move over $47.80 will indicate the presence of buyers. If this move can generate enough upside momentum then we could see a late session drive into this week’s high at $48.96 and the main top at $49.43.

Bearish Scenario

A sustained move under $47.80 will signal the presence of sellers. Under normal volume conditions, breaking this level would trigger an acceleration into $46.16 to $46.94.

For a look at all of today’s economic events, check out our economic calendar.

Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

FOLLOWME Trading Community Website: https://www.followme.com

If you like, reward to support.
avatar

Hot

No comment on record. Start new comment.