Crude Oil Price Update – Next Big Challenge for Bulls is 50% Level at $81.83

U.S. West Texas Intermediate crude oil futures are trading higher late in the session on Friday, recapturing some of this week’s losses, after OPEC+ producers turned down a request by the U.S. to accelerate production increases. Sentiment also gained from data showing U.S. employment rising more than expected in October.

At 19:43 GMT, December WTI crude oil futures are trading $81.54, up $2.73 or +3.46%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $78.25 will signal a resumption of the downtrend. A move through $84.88 changes the main trend to up.

The minor trend is also down. A trade through 83.42 will change the minor trend to up. This will also shift momentum to the upside.

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

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

Daily Swing Chart Technical Forecast

The direction of December crude oil futures into the close on Friday is likely to be determined by trader reaction to $81.83.

Bearish Scenario

A sustained move under $81.83 will indicate the presence of sellers. If this generates enough late session selling pressure then look for the move to possibly extend into $80.04 and $79.12.

Bullish Scenario

A sustained move over $81.83 will signal the presence of buyers. This could trigger a late session acceleration into the minor top at $83.42 and put the market in a position to rally early next week.