Crude Oil Forecast November 27, 2015, Technical Analysis

Light Sweet Crude

The light sweet crude market fell significantly during the day on Thursday, but it would have been a little bit light as far as volume is concerned. Nonetheless, it looks like we are going to continue the downward pressure, as we continue to consolidate between the $43.50 level on the top, and the $40.50 level on the bottom. The $40 level below of course is massively supportive, based upon the fact that it is a large, round, psychologically significant number. Once we break down below $40, this market will be free to go much lower. In the meantime we believe that we will simply bounce around the recent consolidation area, as the oil markets seem to be trying to decide whether or not it’s going to form of base, or continue more downward pressure and breaking down below.

Brent

The Brent market fell during the course of the day on Thursday and fairly light trading, as the Americans weren’t even involved. The $45 level was tested for support to the downside and did in fact show it for the second day in a row. Because of this, we could get a little bit of a bounce but quite frankly we still think that this market has a ceiling in it at the $48 level. Any resistive candle above should be a selling opportunity as far as we can see, and as a result we will approach this market from a seller’s perspective.

The $43.50 level below is the “floor”, but if we break down below there we feel that the market should then go down to the $40 handle as it is a large, round, psychologically significant number. That would be the target after that break down, and we think it’s very possible that we could reach for that area given enough time. At this point, we have no interest whatsoever in buying this market, because quite frankly the US dollar is too strong and the demand for crude oil at the moment is far too weak to justify buying.