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Christopher Lewis
Crude Oil daily chart, November 05, 2019

WTI Crude Oil

The WTI Crude Oil market has rallied during the trading session on Monday, as we continue to go back and forth in a larger consolidation area. We are broken above the 200 day EMA, and it now looks as if the market is trying to figure out what to do with the gap that it has just filled. Ultimately, I do think that we probably go higher, but looking at this chart it’s obvious that there is massive support starting at $52 underneath, and massive resistance at $60 above. Ultimately, I like the idea of buying short-term dips, but I would not get married to position.

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Crude Oil Video 05.11.19

Brent

Brent markets gapped higher as well and have broken above the recent resistance. It looks as if we are going to head towards the 200 day EMA at the $63.60 level, which is an area that has a lot of clustering in the past as well. Ultimately, this is a market that should continue to see upward pressure, reaching towards the $65 handle, and then possibly the $70 level after that. At this point, short-term pullbacks should have plenty of support near the $60 level, and I look at that as a short-term “floor” in the market. All things being equal I think that buying short-term pullback should continue to be a buying opportunity in order to take advantage of short-term volatility to the upside. With OPEC likely to cut production in December, that could offer a little bit of buying pressure.

Please let us know what you think in the comments below

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