Crude Oil traded down to 49.61 during the overnight session for Thursday, December 8, 2016. It proved to be the low of the day as Crude Oil spent the rest of the night session and the US session in rally mode. It made one blip down in the morning to test the low reaching 49.77 and then headed straight up to settle at 50.84. It then continued higher after settlement making its high for the day at the end of the session at 5098.
Crude Oil nearly reversed all the losses from Wednesday’s trade as traders are buying in front of the OPEC- NOPEC meeting this Saturday. OPEC will try to get a solid commitment from NOPEC to cut production by 600,000 barrels. Russia has already indicated they will gradually cut production by 300,000 barrels. The meeting will be a test of OPEC’s ability to convince other major producers of their resolve to follow through with their announced cuts of 1.2 million barrels. A rally above Wednesday’s high of 51.20 could lead to tests of resistance at 51.60 and then last Friday’s high of 52.42. A break above the Friday high continues the path to a test of resistance at 55.00. Support is at 50.64, 49.36 and then 48.29.
High 50.98
Low 49.61
Last 50.96
Daily Pivots for 12/8/16:
|
R2 |
51.89 |
|
R1 |
51.42 |
|
PIVOT |
50.52 |
|
S1 |
50.05 |
|
S2 |
49.15 |
|
|
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