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%.
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.
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.
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.