Crude Oil Price Forecast – Crude Oil Markets Pull Back

Crude oil markets initially try to rally during the trading session on Monday but pulled back slightly as we are approaching pretty significant resistance. That being the case though, it looks as if we are in fact trying to make a move to the upside.
Christopher Lewis
Crude Oil daily chart, October 29, 2019
Sunset time of oil pump, oil industry equipment

WTI Crude Oil

West Texas Crude Oil markets initially tried to rally during the trading session on Monday but gave back the gains to show signs of weakness again. This is a market that I think is trying to build up enough momentum to go higher, but right now it is a bit exhausted and therefore I think we will have some consolidation going back and forth to give us an opportunity about the necessary momentum to go higher and break above the 200 day EMA.

If and when we can break above the 200 day EMA, then the market is very likely to go looking towards the $58 level, followed by the $59 level after that.

Crude Oil Video 29.10.19

Brent

Brent markets also pulled back a bit after initially trying to rally. The $62.50 level has offered enough resistance to turn things around and end up forming a bit of a shooting star. That being the case, the market is likely to reach towards the 50 day EMA underneath. The 50 day EMA is a significant indicator the people pay attention to, so that should cause a bit of a dynamic support. It already has for a couple of sessions, so at this point a pullback should be thought of as buying opportunities for us in this market towards the 200 day EMA above. If we were to break down below the $60 level though, that could send the market down towards the $58 level. With time, I am bullish but I recognize we may get a little bit better pricing to take advantage of.

Please let us know what you think in the comments below

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