U.S. West Texas Intermediate crude oil futures are edging higher on Wednesday shortly after the regular session opening. The market is being underpinned by the hopes that the slowing of new coronavirus cases in China leads to a pickup in demand. Traders are also betting on additional rate cuts by OPEC+ to trim the global supply to meet expectations of lower demand and to stabilize prices. A U.S. move to cut more Venezuelan crude oil from the global supply is also helping to boost prices.
At 15:00 GMT, April WTI crude oil is trading $52.89, up $0.60 or +1.15%.
There is no U.S. Energy Information Administration (EIA) weekly inventories report today. The report has been moved to Thursday at 16:00 GMT due to last Monday’s U.S. holiday.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s high at $52.65. The main trend will change to down on a move through $49.63 and $49.50.
The minor trend is also up. A trade through $51.15 will change the minor trend to down. This will also shift momentum to the downside.
Retracement zone support is layered at $52.52, $51.95 and $51.46.
Daily Technical Forecast
Based on the early price action and the current price at $52.89, the direction of the April WTI crude oil market the rest of the session on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at $52.63 and the short-term Fibonacci level at $52.52.
A sustained move over $52.63 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into the 50% level at $54.20.
A sustained move under $52.52 will signal the presence of sellers. This could lead to a labored break with potential downside targets coming in at $51.95, $51.46 and $51.15.