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Christopher Lewis
Crude Oil daily chart, October 18, 2019

WTI Crude Oil

The West Texas Intermediate crude markets rallied a bit during the trading session as we continue to see a lot of choppiness. There is support underneath though, in the form of an uptrend line and of course the $51 level underneath that extends down to the $50 level. At this point, I think that’s essentially going to be the “floor” in the market, and therefore if we were to break down below it, that could kick off a major selloff. At this point though, it’s likely to hold up, so it’s very likely that we are going to go reaching towards the $55 level above.

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Crude Oil Forecast Video 18.10.19

Brent

Brent markets also have found support underneath, as the $56 level kicks off significant support down to the $55 level. At this point, short-term pullbacks will continue to be buying opportunities, and if we can break above the red 50 day EMA, then the market could go much higher. All things being equal, it’s likely that we will continue to grind back and forth, perhaps reaching towards the $65 level. With that, it’s possibly a situation where there are a lot of tensions around the world that could continue to put a bit of a floor in the crude oil market, and therefore I do like the idea of buying short-term dips but I’m not necessarily looking for an explosive move to the upside. A break down below the $55 level could open up another five dollars to the downside though. Overall, this is a market that continues to be noisy but I think has significant support.

Please let us know what you think in the comments below

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