Crude Oil Price Forecast – crude oil markets collapse

WTI Crude Oil

The WTI Crude Oil markets gapped lower during the trading session on Tuesday, slicing through the $60 level like it wasn’t even there. By doing so, the market looks likely to continue to go lower, reaching towards the 100% Fibonacci retracement level at the $55 level. That’s an area that is going to cause a lot of attention, but quite frankly we are so overdue for a bounce that it’s not even funny. I think a rally needs to be had towards the $60 level to start selling again, and I remain a buyer above the $62.50 level, although that seems less likely now.

Oil Forecast Video 14.11.18

Brent

Brent markets also gapped lower for the day, slicing through $70 like they weren’t there, reaching towards $67 during the trading session. It now looks as if we will continue to sell the rallies, assuming we even get one. It’s not until we break above the $72.50 level that I think buying is a possibility, and a move above there would have traders looking for a value play, perhaps going much higher. At this point though, it looks very unlikely that Brent will pick up either, because quite frankly the Iranian oil sanctions that sent market so much higher has so many waivers attached to them that they essentially don’t come into play. The $65 level underneath is a major support level that I would anticipate a bit of fighting to occur at. If we break down below there, then $60 will be tracked.