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Crude Oil forecast for the week of November 16, 2015, Technical Analysis

By:
Christopher Lewis
Published: Nov 14, 2015, 05:56 UTC

Light Sweet Crude The light sweet crude market fell significantly during the course of the week, slicing through the $44 level. Now that we have done

Crude Oil forecast for the week of November 16, 2015, Technical Analysis

Light Sweet Crude

The light sweet crude market fell significantly during the course of the week, slicing through the $44 level. Now that we have done that, it appears that we are reaching towards the $40 handle, and perhaps even lower than that. If we can break down to a fresh, new low, it’s hard to tell where this market will end up that we would have to anticipate a move down to the $35 level as it is the next large, round, psychologically significant number. At this point in time, it’s a most impossible to buy this market, especially considering that the US dollar is strengthening as well, adding more pressure to the downside. Ultimately, we are “sell only” at FX Empire now that we have broken down yet again. We have no real interest or scenario in which we are willing to buy at the moment.

 

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Brent

Brent markets fell during the course of the week as well, testing the $43.50 level. The market looks as if it is ready to go much lower, and is ready to break down yet again. The next target would be $40, as it is the next large, round, psychologically significant number, and on top of that the US Dollar Index looks as if it is ready to go higher, and that of course moves the Brent market as well. After all, the commodity is measured in US dollars, so it has a bit of a knock on effect.

Ultimately, it’s not until we clear the $54 level that we would consider buying this market, and that does not look very likely now. On top of that, we are closing at the very bottom of the candle which of course shows that we could have a bit of continuation going forward. There is certainly more than enough bearish pressure to continue this market going lower, and the real battle should now be at the $40 handle. As long as the US dollar continues to strengthen, it’s very difficult to imagine this market picking up any real momentum to the upside.


 

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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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