Crude Oil forecast for the week of October 30, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially fell a bit during the sessions that made up the week, but found enough support underneath to break out to the upside, clearing the $52.50 level. The $55 level is now the target, and it’s likely that we will try to get there. If we can break above that level, then the market probably goes to the $60 handle above. However, I suspect that the $55 level will be somewhat resistive, and we could get a bit of a turnaround there. Short-term, I think this market continues to go higher but longer-term issues still arise with higher pricing, as the United States oil companies will flood the market with supply at these high levels. With that being the case, I think that the market is still the realm of short-term traders.

WTI Video 30.10.17

Brent

Brent markets initially fell during the week but then sliced through the $58.50 level and eventually the $60 level on Friday. This shows extreme bullishness, and I think that a break above this week’s candle would be reason enough to serve buying again. Brent markets tend to be a bit more bullish than WTI markets as of late, and the fact that it is leading the way this time it is not a huge surprise. I think pullbacks will continue to be buying opportunities, unless of course we break down below the $55 level. I think that we still have an oversupply issue longer-term, but in the short term I know that a lot of hedge funds are starting throw money into the Brent markets. Overall, this is a bullish market, but the pullbacks will come occasionally, offering value for those who are patient enough to see those moves.