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Christopher Lewis
Crude Oil daily chart, October 30, 2019

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially pulled back a bit during the trading session on Tuesday, slicing through the 50 day EMA and the $55 level. However, we have turned around to show signs of support again and ended up forming a massive hammer. That hammer tells me that the market is ready to continue grinding between the two major moving averages that I have marked on the chart, the red 50 day EMA and the blue 200 day EMA. It simply looks like the market is trying to figure out where to go next, which makes sense considering that the FOMC announcement is Wednesday, and of course there is also an inventory figure coming out on Thursday.

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Oil Forecast Video 30.10.19

Brent

Brent markets also fell during the trading session but bounced significantly to form hammer as well. The 50 day EMA has been rather crucial support and resistance recently, and that of course was the same on Tuesday. By showing that support it looks very likely that the market is ready to go to the upside, perhaps rallying towards the $62.50 level again. The 50 day EMA is support, while the 200 day EMA at the $63.71 level should be resistance. I think that the market is going to continue to move on FOMC, and of course inventory figures on Thursday. It does look like we are trying to form a bit of a base down here, but obviously we are more short-term focus than anything else allowing day traders to take positions repeatedly. Longer-term traders are going to continue to have to be very patient.

Please let us know what you think in the comments below

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