Crude Oil Price Forecast – Crude oil markets continue to bounce

Crude oil markets have found a bit of support just below, with the coinciding trend line and horizontal support. At this point, the market breaking higher makes sense as we had gotten a bit low. However, there is a significant amount of resistance above.
Christopher Lewis
Crude Oil daily chart, October 07, 2019

WTI Crude Oil

The WTI Crude Oil market has rallied a bit during the trading session on Friday, breaking above the top of the candle that formed a hammer on Thursday. The $51 level of course is an area that is crucial, so it’s likely that we will continue to see a lot of support in this general vicinity. However, I think it’s only a matter time before the market sells off again, especially near the $55 level. If we were to break down below the $51 level, it’s likely that the market would reach towards the $45 level underneath.

Crude Oil Inventories Video 07.10.19


Brent markets also have rallied a bit during the trading session on Friday, breaking above the top of the hammer from the previous day. At this point in time it’s likely that the $60 level will offer a bit of resistance though, just as the 50 day EMA will as well. Ultimately, if you break down below the $56 level, the market then has support all the way down to the $55 level, making it a bit of his own rather than a specific level. Breaking down below the $55 level opens up a move down to the $50 handle next. All things being equal, it’s likely that fading rallies on signs of exhaustion should work, but in the short term it looks like we may get a little bit of a relief rally in this market as it has fallen so hard after the initial gap from the drone strike.

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