As expected, the market for light crude oil did stall at the critical $50 mark, as bears take a step back to evaluate their achievement thus far.
Much of the mid-to-longer term prospects for the market still hinge on OPEC’s upcoming meeting on December 6 relating to global output decisions, but the rapid drop in price down to the critical $50 level has had the sellers thinking once again.
On the chart, this was printed as a stall precisely at the $50 level, and an open this week well above the $50 price level suggests we could be in for a potential pullback into the steep move down that the market witnessed for much of November.
Notably though, while we notice the market stalling at the $50 level, we do not yet see any major bullish signs or price action that would suggest a complete reversal or even a major retracement into the downtrend just yet. We believe that as of now, the bears still appear to be the dominant of the two parties.