U.S. West Texas Intermediate crude oil futures are trading higher shortly before the late session close on Thursday. Hope that the trade deal signed by the United States and China on Wednesday would lead to increased global demand drove the market higher, while offsetting potentially bearish comments from the International Energy Agency (IEA) about increasing oil production.
At 22:17 GMT, March WTI crude oil futures $58.62, up $0.78 or +1.35%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through $57.42 will signal a resumption of the downtrend. The main trend will change to up on a move through $65.40. This is highly unlikely, however, there is room for a normal 50% to 61.8% counter-trend retracement.
The main range is $50.18 to $65.40. Its retracement zone at $57.79 to $55.99 is potential support. This zone stopped the selling on Wednesday at $57.42.
The major retracement zone is $58.80 to $61.87. This zone is controlling the longer-term direction of the market.
If using the 50% levels as your guide then look for an upside bias to develop on a sustained move over $58.80, and for the downside bias to continue on a sustained move under $57.79.
If using the Gann angles as your guide, then look for March WTI crude oil to strengthen on a sustained move over the steep downtrending Gann angle at $59.40.
A sustained move under the uptrending Gann angle at $59.18 will signal the presence of sellers.
Taking out the minor bottom at $57.42 will also reaffirm the downside momentum. If the selling volume increases on this move then look for a potential acceleration to the downside into the Fibonacci level at $55.99.
This article was originally posted on FX Empire
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