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Crude Oil Forecast November 3, 2015, Technical Analysis

By:
Christopher Lewis
Updated: Nov 3, 2015, 05:56 UTC

Light Sweet Crude The light sweet crude market fell a bit during the course of the session on Monday as we continue to consolidate around the $46 handle.

Crude Oil Forecast November 3, 2015, Technical Analysis

Light Sweet Crude

The light sweet crude market fell a bit during the course of the session on Monday as we continue to consolidate around the $46 handle. This is an area that starting to offer some support though, as evident over the last couple of sessions. With this, we recognize that if we can get back above the $47 level, this market can go much higher, perhaps reaching as high as $51 with several different resistive areas between here and there. We think found the $48 level is the first resistive area, followed by $50, and then of course the aforementioned $51 level. If we pullback from here, we believe that there is more than enough support to keep this market afloat, and thereby don’t have any interest in selling. We believe ultimately this market is starting to attract enough buying attention that we could go higher.

Crude Oil Forecast November 3, 2015, Technical Analysis
Crude Oil Forecast November 3, 2015, Technical Analysis

Brent

Brent seems to be a bit of a laggard at the moment but you also have to keep in mind that the $50 level above is a large, round, psychologically significant number, and therefore a lot of people will be leery of trading around that area. However, there is enough support near the $48 level, and most certainly at the $47 level to keep this market bouncing. Once we break above the $50 level, it is more than likely that we reach towards the $51 level, and possibly the $54 level.

If we did break down below the recent low, at that point in time the market should then reach down to the $42 level. That of course is a massive bottom in this market, so at that point in time you would have to take care with your positions. Ultimately though, we feel that this market will be fairly choppy, so you will have to keep your position size fairly small and take precautions as to not risk far too much into the marketplace as there is no real discernible trend at the moment. Having said that though, short-term traders should continue to do quite well.


 

brent

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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