Crude Oil Forecast November 10, 2015, Technical Analysis

Light Sweet Crude

The light sweet crude market initially rose during the course of the day on Monday, but found enough resistance at the $45 level to turn things back around and form a bit of a shooting star. The shooting star of course is a negative sign but we have a significant amount of support just below as well. With that being the case, we would have to break down below the bottom of the hammer at the $42.50 level in order to continue selling going forward. With that, we are simply sitting on the sidelines at this point in time. However, if we did get a big enough bounce and some type of exhaustion above, we would be willing to start selling this market again. At this point time, we are going to wait until we get a longer-term supportive candle in order to start buying as it appears that we are starting to roll over a bit.

 

Brent

Brent markets initially rose during the course of the session on Monday, but found more than enough resistance of the $48.50 level to turn things around and form a massive shooting star. The shooting star of course signifies that we are going to go lower, but we recognize that there is a significant amount of support near the $46.50 level as it caused the most recent bounce. With this, if we get below there we feel that it’s only a matter of time before we break down to the $44 level where we saw even more significant support.

We believe that there is no way to buy this market at the moment, simply because it appears that the lows are getting lower, so we would need to see some type of longer-term bullish candle in order to start buying at this point in time basically because we have seen so much downward pressure lately. Ultimately though, the one thing we think that will be a constant of this marketplace will be the volatility that should keep this market a short-term type of trading endeavor at the moment.