Crude Oil Price Forecast – Crude Oil Markets Rallied Again

Crude oil markets rallied again during the trading session on Monday, as we continue to see a lot of bullish pressure in the risk on variety. At this point, the market is in the middle of a larger consolidation area, so it makes sense that we could see bit of noise here.
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.

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

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US