Crude Oil Price Forecast – Crude Oil Markets Bounce Back

Crude oil markets initially fell during the trading session on Tuesday but found enough buyers underneath to bounce back quite nicely, showing signs of resiliency yet again. With this candlestick, and of course the technical analysis, it looks as if crude oil may be trying to make some type of move.
Christopher Lewis
Crude Oil daily chart, October 16, 2019

WTI Crude Oil

The WTI Crude Oil market initially fell during Tuesday but found enough support near the $52.50 level to turn around and form a supportive looking candle. Ultimately, what I find interesting about this is that we have seen quite a bit of buying pressure at $52.50 over the last week or so anyway, and of course the uptrend line underneath will have its influence as well. All things being equal, the $51 level kicks off significant support down to the $50 level, and therefore it makes sense that value hunters have come back into the market.

Oil Forecast Video 16.10.19

Brent

Brent markets also fell rather hard during the Tuesday session initially but has found support just as the WTI market has. Ultimately, this is a market that is probably getting a bit of a boost due to the fact that there are still tensions with the Iranians, and of course there’s also the possibility that the Brexit gets done and that could drive up demand in theory as well. Either way, there is significant support underneath, and that’s probably the most important thing to pay attention to. The 50 day EMA is close to the $60.75 level and breaking above there could open up the door to the $62.50 level, possibly even the $64 level after that. To the downside, I see the $56 level as the beginning of a massive amount of support that extends down to the $55 level. Ultimately, I believe that we are rallying from here to form a larger range.

Please let us know what you think in the comments below

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