Crude Oil Forecast November 6, 2015, Technical Analysis

Light Sweet Crude Oil

The light sweet crude market initially fell during the course of the session on Thursday, but found enough support near the $45.50 level to turn things back around and form a hammer. The hammer of course is a very bullish sign, and as a result we like buying this market on a break above the top of that hammer. With that, we would anticipate that the market should go to the $48 level, perhaps even higher than that. If we can break above the top of the range from the Wednesday session, at that point in time we should then go to the $51 level. Ultimately, if we break down below the bottom of the hammer, we feel that this market would more than likely drift to lower levels, with special attention being paid attention to the $44 level. If we can break down below the $42.50 level, this market should then reach to the $40 level given enough time.

Brent

The Brent market as you can see initially fell, but found enough support at the $48 level to turn things back around and form a hammer. Ultimately, if we break above the top of the hammer, we believe this market should then reach towards the $51 level. If we can get above the $51 level, the market will then reach towards the $54 level. In fact, this is what we think will happen, but we will have to see what affect the Nonfarm Payroll numbers have on the overall markets.

If we break down below the $48 level, the market should then reach towards the $46.50 level, which of course caused the most recent bounce in the market. Ultimately, if we break below the $46.50 level, the market will then drop all the way down to the $44 level over time. The one thing that we do know that’s going to happen is that we should see quite a bit of volatility in this market, especially with the jobs number coming out today, as it normally does cause a lot of noise.