Crude Oil Price Update – EIA Reports Surprise Stockpile Build; Key Fibonacci Support at $55.60

U.S. West Texas Intermediate crude oil futures are trading lower shortly before the release of the U.S. Energy Information Administration’s weekly inventories report at 14:30 GMT. Earlier in the week, traders were forecasting an 800,000 drawdown, but this could change since the American Petroleum Institute reported an unexpected inventory build late Tuesday.

At 14:23 GMT, November WTI crude oil is trading $55.90, down $1.39 or -2.44%.

The market is also under pressure due to tensions over U.S.-China trade negotiations after President Trump said on Tuesday that he won’t accept a “bad deal”.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower. The main trend will change to down on a trade through $53.93.

The minor trend is also down. A move through $59.49 will change the minor trend to up. This will also shift momentum to the upside.

The main range is $50.48 to $63.89. Its retracement zone at $57.19 to $55.60 is currently being tested.

The short-term range is $53.93 to $63.89. Its retracement zone at $57.73 to $58.91 is resistance.

Daily Technical Forecast

Based on the early price action and the current price at $55.90, the direction of the November WTI crude oil futures contract the rest of the session on Wednesday is likely to be determined by trader reaction to the Fibonacci level at $55.60.

Bullish Scenario

A sustained move over $55.60 will indicate the presence of buyers. The first key upside target is a downtrending Gann angle at $56.59. Overtaking this angle could trigger a rally into the 50% level at $57.10.

Bearish Scenario

A sustained move under $55.60 will signal the presence of sellers. This could trigger a break into an uptrending Gann angle at $54.73, followed by the main bottom at $53.93.