Crude Oil Price Update – Pivot at $51.76 Controlling Direction Today

December West Texas Intermediate Crude Oil is trading higher shortly before the regular session opening. The market is being underpinned by concerns over Middle East supplies and a tightening in the U.S. due to hurricane-related production issues as well as another decline in the rig count.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $52.65 will signal a resumption of the uptrend after a four day setback. This could trigger the upside momentum needed to challenge the next main top at $53.11. This is a potential trigger point for an acceleration to the upside.

A trade through $50.87 will signal a shift in momentum to the downside, but the trend won’t change to down unless $49.44 is violated.

The short-term range is $52.65 to $50.87. Its 50% level or pivot at $51.76 is controlling the direction of the market today.

The intermediate retracement zone at $50.60 to $50.01 is the first support zone. The main retracement zone at $49.85 to $49.08 is the primary downside target and major support. The best support is a price cluster at $50.01 to $49.85.

Daily Forecast

Based on the current price at $52.05 and the earlier price action, the direction of the crude oil market today is likely to be determined by trader reaction to the short-term pivot at $51.76.

A sustained move over $51.76 will indicate the presence of buyers. This could create enough upside momentum to challenge the main top at $52.65, followed by another main top at $53.11.

A sustained move under $51.76 will signal the presence of sellers. This could trigger an acceleration to the downside with the first target $50.87, followed by $50.60.

Watch the price action and read the order flow at $51.76 all day. Trader reaction to this level will tell us if the buyers or sellers are in control.