U.S. Crude oil futures are trading higher on Wednesday shortly before the U.S. Energy Information Administration’s weekly inventories report. It’s expected to show a build of 2.1 million barrels. However, traders aren’t sure with this number since yesterday’s American Petroleum Institute’s report showed an unexpected drawdown. Underpinning prices are the OPEC-led production cuts and the U.S. sanctions on Venezuelan exports. However, demand concerns may be limiting gains.
At 13:00 GMT, April WTI crude oil futures are trading $53.77, up $0.31 or +0.60%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through $56.05 will signal a resumption of the uptrend. A move through $51.62 will change the main trend to down.
The short-term range is $56.05 to $51.62. Its retracement zone at $53.84 to $54.36 is providing resistance.
The main range is $43.00 to $56.05. If the trend changes to down then look for the selling to extent into its retracement zone at $49.53 to $47.99.
Daily Technical Forecast
Based on the early price action, the direction of the April WTI crude oil futures market on Wednesday is likely to be determined by trader reaction to the 50% level at $53.84 and the 61.8% level at $54.36.
A sustained move over $54.36 will indicate the presence of buyers. This could trigger an acceleration to the upside with the next target angle coming in at $55.18.
A sustained move under $53.84 will signal the presence of sellers. The first downside target is a minor 50% level at $53.02. This is followed by the minor bottom at $51.62 and a long-term uptrending Gann angle at $51.50.