Crude Oil Price Update – Slow But Steady Buyers Targeting $46.43 Fibonacci Level

U.S. West Texas Intermediate crude oil futures are trading nearly flat at the mid-session on Wednesday after hitting a five-month high earlier in the session. For most of the session, the market has been underpinned by the U.S. producer shut down in the Gulf of Mexico ahead of the arrival of Hurricane. So far capping gains are worries about the demand outlook during the coronavirus pandemic.

At 17:11 GMT, October WTI crude oil futures are trading $43.39, up $0.04 or +0.09%.

Traders are also showing a limited response to a government report showing another decline in crude oil stockpiles.

According to the U.S. Energy Information Administration (EIA), U.S. crude oil stockpiles fell last week as exports soared the most in 18 months and refineries boosted production to the highest rate since March before the worst of the demand hit from the coronavirus pandemic.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out the previous main top at $43.68. The new main bottom is $41.33. A trade through this level will change the main trend to down.

The major support is the 50% level at $42.01. This level is also controlling the longer-term direction of the market.

Short-Term Outlook

Look for the bullish tone to continue as long as October WTI crude oil futures can hold $42.01. If buyers can regroup later in the session to take out the intraday high at $43.78 then they may create enough upside momentum to challenge the long-term Fibonacci target at $46.43.

A failure to hold $42.01 will be a sign of weakness, while taking out $41.46 then $41.33 will change the main trend to down and could trigger an acceleration to the downside. #CrudeOil#

Reprinted from Fxempire，the copyright all reserved by the original author.