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Crude Oil Forecast October 1, 2014, Technical Analysis

By:
Christopher Lewis
Updated: Aug 24, 2015, 22:00 UTC

Light Sweet Crude The light sweet crude market fell hard during the course of the day on Tuesday, finding the $95.00 level be far too resistive to hang

Crude Oil Forecast October 1, 2014, Technical Analysis

Light Sweet Crude

The light sweet crude market fell hard during the course of the day on Tuesday, finding the $95.00 level be far too resistive to hang onto any type of gains. In fact, we ended up losing 3.5% during the day, going all the way down to the $91.00 level. This market still has a significant amount of support below though, near the $90.00 level, which is an area that has been supportive several times. In a way, we have to look at this market is potentially continuing to consolidate between the $90.00 level on the bottom, and the $95.00 level on the top. If we do break down below the $90.00 level however, this market will more than likely drop down to the $88.00 level first, and then ultimately the $85.00 level.

Demand is shrinking in North America longer-term, and it appears that the marketplace is going to continue to have to weigh that potential anchor. Ultimately though, it is going to be difficult to sell this market until we close below the $90.00 level, as we are so close to that support area.

Crude Oil Forecast October 1, 2014, Technical Analysis
Crude Oil Forecast October 1, 2014, Technical Analysis

Brent

The Brent market continues to underperform the light sweet crude market, as it broke down below the $95.00 level during the session on Tuesday. The candle is very negative, and also sliced through several hammers from the previous week. Because of this, we feel that this market is going to continue falling, probably heading to the $90.00 level over the course of the next several weeks. Any bounce from here should continue to see sellers step into the marketplace, as the trend is almost certainly set at this point in time.

In fact, we believe that short-term traders will continue to make quite a bit of money shorting this market in the futures market, as well as the odd CFD market as available. Nonetheless, we have no interest in buying this market until we get above the $100 level, something that looks very unlikely at this point time, and something that we would not anticipate seeing anytime soon.

 

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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