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Crude Oil Forecast October 17, 2014, Technical Analysis

By:
Christopher Lewis
Updated: Aug 25, 2015, 01:00 UTC

Light Sweet Crude The light sweet crude market rose during the course of the day on Thursday, testing the $85 level. That level of course offered enough

Crude Oil Forecast October 17, 2014, Technical Analysis

Light Sweet Crude

The light sweet crude market rose during the course of the day on Thursday, testing the $85 level. That level of course offered enough resistance to turn the market back around and form a fairly negative looking candle although we did close with a slight gain. Ultimately though, that market is one that very bearish overall in the fact that the $85 level did offer resistance at a large, round, psychologically significant number suggests to us that the market is probably going to struggle to hold onto any gains.

Ultimately, the $80 level below should be rather supportive, so quite frankly we feel that this market will probably bang around in this general vicinity. The area could be an area where we look for a bit of a breather, as the market has fallen apart rather rapidly. If we do get below the $80 level, that means that the market will more than likely enter a freefall at that point in time.

Crude Oil Forecast October 17, 2014, Technical Analysis
Crude Oil Forecast October 17, 2014, Technical Analysis

Brent

The Brent market as you can see did rally during the course of the day on Thursday, testing the $85 level as well. At that area is a large, round, psychologically significant number obviously, and with that it suggests that the market continues its bearish stance, and really at this point in time any rally at this point in time would be susceptible to the whims of negative headlines, and it is not until we get above the $90 level that we would be comfortable selling this market.

If we do get above the $90 level, we feel the market would then head towards the $97 handle. That area of course is an area of significant clustering, and because of that we would anticipate that there would be a significant amount of resistance as well. With that being said, we are simply waiting for rallies to sell resistive looking candles as this market and its downtrend should continue going forward. The trend does not change until we get above the $97 handle, something that isn’t going to happen 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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