Crude Oil Price Update – Reaction to $50.30 Will Tells Us If Bulls or Bears are in Control

November West Texas Intermediate crude oil futures are trading higher shortly before the cash market opening. After surging last week to a multi-month high on September 14, the market has consolidated for three days. This indicates investors may be waiting for news to act as a catalyst to take the rally to the next level.

Perhaps OPEC is getting ready to announce an extension of the deal with other major producers to cut production.

Daily Technical Analysis

The main trend is up according to the daily swing chart. If the upside momentum continues then the May 25, 2017 top at $52.62 will become the next upside target.

The support is the major retracement zone at $50.30 to $48.87. For the past three days, the market has been straddling the upper or Fibonacci level of this range at $50.30. Holding above this zone will give the market a strong upside bias.

Daily Forecast

Based on the current price at $50.65 and the earlier price action, the direction of the November crude oil market today is likely to be determined by trader reaction to the Fib level at $50.30.

A sustained move over $50.30 will indicate the presence of buyers. This could create enough upside momentum to challenge last week’s high at $50.88.

Overtaking $50.88 will signal a resumption of the uptrend with a long-term downtrending angle at $51.49 the next likely upside target. This angle is the trigger point for an acceleration into $52.62.

A sustained move under $50.65 will signal the presence of sellers. This could trigger an acceleration to the downside with the next major target angle coming in at $49.14.

Watch the price action and read the order flow at $50.30 all session.