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

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.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US