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Crude Oil Forecast December 2, 2015 Technical Analysis

By:
Christopher Lewis

Light Sweet Crude The light sweet crude market initially rallied during the day on Tuesday, breaking above the $42 level during early trading. However, we

Crude Oil Forecast December 2, 2015 Technical Analysis

Light Sweet Crude

The light sweet crude market initially rallied during the day on Tuesday, breaking above the $42 level during early trading. However, we rolled over enough to turn things back around and form a shooting star. This is a market that has seen quite a bit of bearish pressure, and we think that continues. With Crude Oil Inventories coming out today, it’s very likely that there will be continued volatility. We believe that the market will reach towards the $40 level, and if we can break down below there go much lower. Any rally at this point in time should be a potential selling opportunity as the $43.50 level offers so much in the way of resistance. We have no interest in going long, we just simply look for reasons to sell this market again and again.

 

Brent

Brent markets did much the same, popping above the $45 level but finding the sellers far too strong up in that area. The shooting star that formed matches the one on Monday, and it shows that we are simply “rolling over” at this point in time. In fact, you could even make an argument for a little bit of a bearish flag that we just broke out of. We believe that this market continues to reach towards the $43.50 level in the short-term, and then below there and heading towards the $40 handle. The US dollar continues to strengthen, and that of course does no favors for commodities in general, much less Brent which is highly dependent on usage out of frontier economies and the European Union.

We continue to sell rallies every time they appear, and quite frankly see quite a bit of resistance all the way to at least the $47.50 level, if not even higher than that. Given enough time, we feel this market is one that will fall apart but we are most certainly a bit oversold so we are not looking for massive moves in short-term increments. This is more or less a longer-term traders market now, $40 looks like it’s the next major target at this point.

brent

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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