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Crude Oil forecast for the week of November 9, 2015, Technical Analysis

By:
Christopher Lewis
Published: Nov 7, 2015, 06:39 UTC

Light Sweet Crude The light sweet crude market initially tried to rally during the course of the week, but found enough resistance at the $48 level to

Crude Oil forecast for the week of November 9, 2015, Technical Analysis

Light Sweet Crude

The light sweet crude market initially tried to rally during the course of the week, but found enough resistance at the $48 level to turn back around and form a rather negative candle. With this being the case, the market looks as if it is ready to continue to go back and forth, and as a result it is only a matter of time before we have to make some type of impulsive move. We think that the market is probably going to try to reach down towards the $40 level, with the US dollar strengthening the way it has been. If we can break above $52, at that point in time we feel that it is a longer-term “buy-and-hold” type of situation. Ultimately though, we think that this market is probably to be easier to trade for short-term traders.

 

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Brent

The Brent market initially tried to rally during the course of the week, but found far too much resistance above $50 to continue going higher. With that being the case, we feel that the turnaround show significant weakness and we should continue to go lower. Perhaps even as low as $44 given enough time, but ultimately we recognize that this is a market that is probably easier to trade off of short-term charts. Ultimately, we think that the markets are getting ready to break down and head towards the $44 level but we don’t understand whether or not the markets will be able to pick up enough bearish pressure to break down below there.

We do have a little bit of a push and pull effect, because the reality is that the US dollar is probably the main driving factor in this market. We also recognize that there could be a bit more in the way of demand though, especially if the US economy is starting to hire more workers. Because of this, volatility will be the way going forward, and with that we need to continue to look to short-term charts in the meantime.


 

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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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