Crude Oil forecast for the week of October 24, 2016, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the course of the week, but then turn right back around to form a shooting star. This is the second week in a row, and as a result it looks as if we are starting to try to roll over. The $52 level looks to be massively resistive, and with that being the case it would not surprise me at all to see a pullback. At this point, there are longer-term structural issues when it concerns the markets and of course supply, and as a result it would not surprise me at all to see the sellers step back in. However, if we break above the shooting star and more importantly the $52 level, it would be a very bullish sign indeed and could send this market much higher. With this, pay very close attention to this market.

 

Oil Weekly Fundamental Forecast

Brent

Brent markets did very much the same thing, as we had seen a shooting star for not only this past week, but the week before. Because of this, the market looks very likely to roll over as well, and because of that I think that a break down below the bottom of the shooting star for the week could be a selling opportunity, but with all of the volatility that I would anticipate I might do on the shorter-term charts. On the other hand, if we can break above the top of the shooting star from the previous week, that would be an extraordinarily bullish sign and should send the markets into a very strong move higher.

Regardless of what happens, it’s probably going to be easier to trade this market off of the daily charts or even lower time frames as there is so much in the way of noise in this market at the moment. With this being said, the Brent markets will be one of the more interesting places to be of the next couple of weeks. Pay attention to the US dollar, as it rises it can often bring down the value of crude oil.