Crude Oil Price Forecast – crude oil markets bounce again on Thursday

WTI Crude Oil

The WTI Crude Oil market rallied during the day on Thursday, reaching just above the $57 level at the time of writing. I believe that this market will continue to find value hunters down here, because quite frankly crude oil is dirt cheap after this big flush. Remember, markets tend to get out of hand and far too bearish or bullish before return to normalcy. We have certainly gone too far to the downside so I think that it’s time to start buying with small positions, and perhaps aiming to fill the gap at the $60 level.

Crude Oil Price Forecast Video 16.11.18

Brent

Brent markets also rallied a bit during the session on Thursday, bouncing from the $65 handle. I think the gap at $70 will be filled, and as long as we can stay above the $65 level, it’s likely that the market will continue to find value hunters in this overall area. I believe that the market has gotten far ahead of itself, and I believe that it’s likely that the $65 level could be the bottom. However, if we were to break down below there it’s likely that the market would go down to the $60 level after that. Regardless of what happens next, I think one thing that most people can see just overdone this selling has been, and therefore a bounce is almost necessary. If for some reason the US dollar starts to soften, that could also help this market rally. A break above the highs from the Wednesday session turns that into an “inverted hammer.”