Crude Oil Price Forecast – Crude Oil Markets Pull Back

Crude oil markets pulled back significantly during the trading session on Monday, as we continue to see a lot of noise around global growth and demand. Ultimately, this is a market that does have significant support underneath that though.
Christopher Lewis
Crude Oil daily chart, October 15, 2019

WTI Crude Oil

The WTI Crude Oil market pulled back from the psychologically significant $55 level, to reach down and fill a slight gap from the Friday open, but then reached below the $53 level. That is a significant amount of support just waiting to be had underneath there, so it’s not a huge surprise that we have bounced a bit from there. Ultimately, this is a market that continues to be very volatile, but at this point we are close enough to structural support that I do believe that the buyers are going to step back in and trying to take control.

Crude Oil Video 15.10.19

Brent

Brent markets also have pulled back a bit from the 50 day EMA, an area that of course will always attract a lot of attention from a technical standpoint. Ultimately, we have filled a bit of a gap from the Friday open, and now have bounced a bit at the $59 level. At this point, the 50 day EMA will of course cause quite a bit of attention, so as long as that’s going to be the case, and a lot of longer-term traders pay attention to it, it makes sense that it will be difficult to break above. This of course is a very negative looking candle stick at first glance, but the fact that the gap is trying to hold tells me that there are plenty of buyers underneath and that we will eventually push to the upside. This doesn’t mean that it starts a major uptrend, rather that we are simply trying to find balance between the $55 level on the bottom and the $70 level on the top.

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