Crude Oil Price Forecast – Crude Oil Markets Continue To Build Base

There have been rumors that OPEC might be cutting production, and this of course has put a little bit of bullish pressure in the crude oil markets overall. That being said, technically speaking we were at the bottom of a larger consolidation area anyway, so this move shouldn’t be much of a surprise to anyone.
Christopher Lewis
Crude Oil daily chart, October 23, 2019

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Tuesday as rumors came out that OPEC was cutting production. Whether or not this is true, there is significant technical support underneath, extending all the way down to the $50 level. It looks as if the market has been trying to build a bit of a base at the bottom of a much larger consolidation area, but it has to deal with the 50-day EMA above. I think that might continue to offer resistance and once it gets broken, then the market can start to reach towards the $57.50 level. That being said, this is a market that should be bought on dips as we are forming a nice ascending triangle.

Oil Forecast Video 23.10.19

Brent

Brent markets also rallied in the same session, and for much of the same reasons. We are approaching the 50-day EMA over here as well, and this is an area that will probably continue to cause a significant amount of noise. If we can break above that 50-day EMA which is currently trading at the $60.50 level, then the market can continue to go higher, perhaps reaching towards the $62.50 level, and then the $65 level. Pullbacks at this point should be thought of as buying opportunities as there seems to be a significant amount of support at the $57.50 level. With all that being the case, I do like the idea of buying the death.

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