Crude Oil Price Update – Next Big Challenge For Bulls Is At The 50% Level At $ 81.83


US West Texas Intermediate crude oil futures are trading higher late Friday, regaining some of this week’s losses, after OPEC + producers turned down a US demand for accelerate production increases. Sentiment also gained on data showing US employment increased more than expected in October.

At 7:43 p.m. GMT, December WTI crude oil futures are trading at $ 81.54, up $ 2.73 or + 3.46%.

December Daily WTI Crude Oil

Technical analysis of the daily swing chart

The main trend is downward on the daily swing chart. A trade at $ 78.25 will signal a resumption of the downtrend. A move to $ 84.88 changes the main upward trend.

The minor trend is also downward. A trade up to 83.42 will change the minor trend upward. This will also shift the momentum upward.

The main range is $ 85.41 to $ 78.25. Its 50% level at $ 81.83 is the first target on the upside. As the main trend is down, sellers could test this level.

On the downside, the 50% support levels are aligned at $ 80.04 and $ 79.12. If the latter fails, prices could accelerate into a pair of 50% levels at $ 76.91 and $ 76.23.

Technical forecasts of the daily swing chart

The direction of crude oil futures from December through Friday’s close will likely be determined by the reaction of traders at $ 81.83.

Bearish scenario

A sustained move below $ 81.83 will indicate the presence of sellers. If that generates enough selling pressure late in the session, look for the move to eventually expand to $ 80.04 and $ 79.12.

Bullish scenario

A sustained move above $ 81.83 will signal the presence of buyers. This could trigger an end-of-session acceleration towards the minor high at $ 83.42 and put the market in a position to recover early next week.


About Leni Loberns

Check Also

Exxon Mobil makes first oil discovery in Angola in 20 years

Over the past five years, the largest independent oil and gas company in the United …