Crude Oil Midday Technical Analysis November 2

WTI Crude Oil

The WTI Crude Oil market fell towards the $63 level after the jobs number came out on Friday, but found enough support thereto turnaround and bounce, forming a bit of a hammer. This is an hourly candle though, so it obviously will be changing the trend. I believe this point the market is very likely to bounce a bit, but we are still very much under pressure and I think that the $64 level is going to offer a bit of resistance, just as the $65 level will. If we were to break down below the $63 level, that would be very negative indeed.

Crude Oil Inventories Video 02.11.18

Brent

Brent markets also found themselves relatively flat and falling just after the jobs figure, but also have found a bit of support just underneath. At this point, I think that the market is going to have around the $73 level before breaking down a little bit further. If we do rally, I anticipate both $74 and $75 as offering resistance, so I believe that there will be enough exhaustion in that area to start selling again. In fact, it’s not until we break above the $75 level that I would be comfortable buying this market. I suspect that rallies are opportunities to short again, but I also recognize that these markets can be volatile and eventually we will get some type of significant relief rally. I would step to the side there, unless of course we do close above the $75 level, and then simply let the market exhaust itself before shorting again.