Crude Oil Forecast November 4, 2015, Technical Analysis
Light Sweet Crude
The light sweet crude market broke higher during the course of the session on Tuesday, as the market jumped above the $47 level. It now looks as if the market is reaching towards the $48 level, and then perhaps the $50 level above there as the bullishness looks like it’s picking up. Ultimately though, we believe that the market will reach towards $50, as it now appears that we are going to continue in the previous consolidation area. We also recognize that the Crude Oil Inventory number comes out of the United States today, so we could get a bit of volatility due to that, but we think it will be short-term at best and it appears that the market has already made up its mind to continue going higher at this point. We look at pullbacks as potential value going forward on signs of support.
Brent markets initially tried to fall during the course of the session on Tuesday but found enough support to reach towards the $50 level. If we can break above there, the market should continue to go much higher, perhaps reaching to the $51 level, and then eventually the $54 level. This essentially would be a continuation of the overall consolidation that we’ve seen recently, and as a result that makes quite a bit of sense to us. We have no interest whatsoever in selling this market as there is more than enough support below to keep this market going higher.
The crude oil numbers coming out of America will also have an effect on this market as it will the light sweet crude market, but ultimately we believe that the overall move higher will continue. We don’t have any interest in selling at this point, as we think this is a simple matter of the market bouncing from the bottom of the overall range that we will be trading in. That being said, we believe that short-term buying opportunities will present themselves on pullbacks as well as the aforementioned break above the $50 handle.