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Crude Oil Price Forecast – crude oil markets continue bloodbath

By:
Christopher Lewis
Updated: Nov 9, 2018, 18:57 UTC

Crude oil markets fell again during the trading session on Friday, breaking down below support levels only to turn around and bounce. However, were not out of the woods quite yet and it’s possible that we are seeing a bit of short covering later in the day.

Crude Oil daily chart, November 12, 2018

WTI Crude Oil

The WTI Crude Oil market broke down below the $60 level, but then turned around to bounce. The hammer that looks like it’s trying to form at this point suggests that we could get some buying here, but at this point I think it’s likely that we will continue to struggle. At this point, looking at this chart it’s likely that we need to break the $62.50 level before we can start to get remotely optimistic. Oil markets have broken down significantly, and the technical damage is crucial. At this point, it’s likely that the Americans pumping out over 12 million barrels a day continues to weigh upon this market. If we break down below the bottom of the candle stick for the Friday session, we would continue to go lower.

Crude Oil Inventories Video 12.11.18

Brent

Brent markets also broke down below the $70 level but popped back towards that level. The market is finding support in that area which is a large, round, psychologically significant number. The hammer of course is a bullish sign, but it’s not until we break above the $72.50 level that I would be truly convinced that the buyers are starting to take control again. A break down below the bottom of the Friday candlestick could send this market down to the $67.50 level next. I think the one thing that we are probably going to see is quite a bit of volatility, so keep in mind that will probably continue to be the case.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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