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Crude Oil Price Forecast – crude oil markets find support after pullback

Christopher Lewis
Crude Oil daily chart, October 10, 2018

WTI Crude Oil

The WTI Crude Oil market pulled back initially during the trading session on Tuesday but found enough support at the $74 level to find plenty of buyers. At this point, I think we are continuing the overall consolidation between the $73 level on the bottom and the $75 level in the top. However, this is a market that has formed a daily hammer, so I think that we should continue to see a lot of volatility. Eventually, I would anticipate that the market moves beyond the $75 level and continues much higher as we begin to worry about the Iranian sanctions, but I also recognize that there are a lot of moving pieces currently. With that being the case, I continue to look at oil as a market that could offer a bit of value occasionally, and dips of course should offer opportunity. If we do break above the $75 level, then I believe that the market probably goes looking towards the $76 level.

Brent

Brent markets have pulled back during the trading session, dipping slightly below the $84 level. By doing so, we ended up forming a bit of a hammer on the bounce, and that does look rather attractive. I think the $85 level above will continue to be a barrier, but if we can break above that level it’s likely that we will continue to go higher, with the initial target being the $86 level. I like buying dips in the Brent market just as I do in the WTI Crude Oil market, as the energy demand should continue to be relatively strong, and of course I believe that the Iranian sanctions will of course continue to put upward pressure in this marketplace.

Oil Forecast Video 10.10.18

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