Crude Oil Forecast October 26, 2016, Technical Analysis

WTI Crude Oil

During the day on Tuesday, the WTI Crude Oil market initially tried to rally but then turned around to fall below the $50 level. There is a significant amount of support all the way down to the $49 level, so having said that I feel it’s only a matter of time before we get some type of supportive candle that we can start buying. Ultimately, this market will then reach back towards the highs that we’ve seen recently, and as a result I would be a buyer on a supportive candle. But, if we get a break down below the $49 level, I feel at that point in time the market could break down significantly. With this, I will be watching as we get the Crude Oil Inventory announcement coming out of the United States today. Regardless, expect a lot of volatility during the session.

 

Oil Fundamental Forecast

Brent

Brent markets initially tried to rally on Tuesday, but turned around to crash into the $50 handle. I believe that the end of the support is somewhere near the $49 level, so a break down below there could send this market looking for the $47 level. With this, I would be a seller, and expect to see more bearish pressure pick up. Ultimately, a rally from here could be based upon a supportive candle, and that could send the market looking for the $53 handle.

This is a market that’s been choppy and around for a couple of weeks now, as we are simply trying to build up enough momentum to make the next move. With this, I think today will be fairly important as we get the inventory numbers coming out of the United States giving us an idea as to what the real demand is. Because of this, I think that today is one of the more important days that we are going to have in this market in the short-term. Ultimately, I think that there is going to be a bit of an oversupply problem, the question is when will the market start focusing on that?