Crude Oil Price Forecast – Crude Oil Markets Choppy And Neutral

Crude oil markets went back and forth during the trading session on Friday, as we continue to see a lot of choppy trading when it comes to crude oil markets in general. Quite frankly, the markets have a lot of conflicting signals at the moment that will continue to cause issues.
Christopher Lewis
Crude Oil daily chart, November 11, 2019

WTI Crude Oil

The WTI Crude Oil market has gone back and forth during the trading session on Friday as we reached down to the 50 day EMA, only to turn around and reach above the 200 day EMA. Ultimately, the $58 level above will cause quite a bit of resistance, so if we were to break above there it’s likely that the market could then go to the $60 level. To the downside, if we were to break down below the $55.50 level, then it’s likely that we could go down to the $54 level. All things being equal, I think a lot of short-term back-and-forth continues.

WTI Video 11.11.19

Brent

Brent markets broke down significantly to test the 50 day EMA but then turned around to form a hammer. At this point, the market is likely only to continue more of the choppy and ridiculous short-term behavior that we have seen. That being said though, it seems to be easier to simply buy short-term pullbacks for quick trades. If we were to break above the 200 day EMA, which is at the $63.50 level, then we could go to the $65 level which is significant resistance. I expect a lot of noise going forward, as OPEC is threatening to cut production, but some of the larger nations in OPEC are starting to step away from that statement. However, at the same time demand is seriously threatened around the world, not only from slowing economic conditions but the US/China trade war.

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