Crude Oil Forecast October 25, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market had a very volatile session on Tuesday, slamming into the $52.50 level. This is an area that if we break above, I think that we will continue to go higher, perhaps reaching towards the $55 level over the longer term. At this point, I’m not interested in selling the market, least not yet. I think that a pullback from here will more than likely find plenty of support near the $52 handle. If we did breakdown below the 51.50 level, then I have to reevaluate things, but it looks as if we are trying to break out via several momentum building efforts. Once we get that, the market is ready to go much higher in my estimation, and probably quick in its pace. Having said that, if we pull back there can be a case made for dropping down to the $50 level.

Oil Forecast Video 25.10.17

Brent

Brent markets went back and forth during the day, showing quite a bit of noise, and more importantly: support near the $57 level. It looks as if we are going to go towards the $50.50 level above, which is massively resistive. If we can break above there, then the market is free to go to the $60 handle above. It appears that backwardation is starting to come to the marketplace, which is typically bullish for the commodity. I think dips at this point should be buying opportunities, and given enough time I think a supportive candle will present itself that we can take advantage of. Until then, it’s not until we break above the resistance or some type a pullback that shows bullish pressure that I’m willing to put money to work. Selling isn’t much of a thought yet, but below the $56.50 level you can make an argument for it.