Crude Oil Forecast November 7, 2016, Technical Analysis

WTI Crude Oil

The WTI Could Oil market initially fell during the day on Friday but found enough support to turn things around and form a hammer. This isn’t a huge surprise though because we of course have the presidential election coming on Tuesday. Because of this, it’s likely that a lot of traders have stepped away from the market and therefore we couldn’t break down below the support. With this being the case, expect a lot of volatility of the next couple of days but I am going to look for resistance above at the previous uptrend line. An exhaustive candle at higher levels would be a nice opportunity to go short. On the other hand, if we break down below the bottom of the hammer, I think we will then start to fall towards the $40 handle below. Either way, you can expect a lot of choppiness in the next couple of days.

 

Brent

Brent markets found themselves falling during the lead the day on Friday but found enough support near the $45 level to turn things around and form a hammer. Not a big surprise to me, quite frankly I think a lot of people are getting out of the markets right ahead of the US presidential election, as it will have far-reaching consequences in several different markets. It will most certainly move the US dollar, and the US dollar moves everything else. Because of this, I am waiting to see whether or not we get exhaustion closer to the previous uptrend, which I would love to sell. I also would start selling immediately if we broke down below the hammer as it could show some kind of break down in this market and have the traders looking for the $42 level below. I have no interest in buying oil at the moment, because not only do we have the presidential election coming, but we also have a massive oversupply of crude oil out there and that isn’t going to change anytime soon, and therefore selling is the only option I have.

Oil Fundamental Forecast