Crude Oil Forecast November 17, 2015, Technical Analysis

Light Sweet Crude

The light sweet crude market went back and forth during the course of the day on Monday, testing the $40 level for support. That being the case, we ended up forming a bit of a neutral candle, perhaps even something akin to a hammer. With this, if we can break above the $42 level we could get a bit of a bounce but quite frankly we at FX Empire have no interest in buying this market. We believe that a resistant candle above would be a nice selling opportunity. On the other hand, if we break down below the $40 handle, we would also be sellers there as well.

Brent

The Brent market fell significantly during the course of the session as well on Monday, testing the $43.25 handle. We bounced enough to form a bit of a hammer, which is sitting just below the $45 level. While we do as suggested that there is a possible bounce coming, the reality is that the market is essentially broken at this point. We have no interest in buying this market, and as a result even if we get a nice bounce from here we are willing to sell this market on resistive candles above. Those resistive candles could be used to continue the downward pressure. On the other hand, if we break down below the bottom of the hammer, the market should then reach towards the $40 level.