U.S. West Texas Intermediate crude oil futures are trading lower on Wednesday shortly ahead of the release of the U.S. Energy Information Administration (EIA) weekly inventories report at 14:30 GMT. Traders are looking for the report to show a 2.1 million barrel draw. However, yesterday’s American Petroleum Institute (API) weekly inventories report showed a surprise build of 2.4 million barrels. Therefore, traders should watch for unexpected news and heightened volatility.
AT 14:03 GMT, July WTI crude oil futures are trading $62.53, down $0.60 or -0.92%.
The market is also being pressed by a drop in demand for risky assets due to renewed tensions over U.S.-China trade relations.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A new main top was formed at $63.96. A trade through this level will change the main trend to up. A trade through the last main bottom at $60.10 will signal a resumption of the downtrend.
The short-term range is $60.10 to $63.96. Its 50% level or pivot at $62.03 stopped the selling earlier today at $62.05.
The main range is $66.44 to $60.10. Its retracement zone at $63.27 to $64.02 stopped the buying on Monday at $63.96.
The market is also trading inside the major retracement zone at $63.36 to $59.70. This zone is controlling the longer-term direction of the market. The 200-day moving average at $60.70 is additional support.
Daily Technical Forecast
Based on the early price action and the current price at $62.53, the direction of the June WTI crude oil market on Wednesday is likely to be determined by trader reaction to the pivot at $62.03.
A sustained move over $62.03 will indicate the return of buyers. If this generates enough upside momentum then look for an intraday rally to possibly extend into $63.10 then $63.27 to $63.36.
A sustained move under $62.03 will signal the return of sellers. The next downside target is an uptrending Gann angle at $63.82. Watch for a technical bounce on the first test of this angle. If it fails then look for the selling to possibly extend into the next uptrending Gann angle at $60.85.
Source : https://www.fxempire.com/forecasts/article/crude-oil-price-update-found-support-on-50-level-at-62-03-ahead-of-eia-report-575827399