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Christopher Lewis
Crude Oil daily chart, November 12, 2019
Oil field scene, the evening of beam pumping unit in silhouette

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially fell towards the $56 level underneath before turning around and showing signs of strength. At this point, the market looks very likely to turn around and try to reach towards the $58 level. Breaking through that level of course would be very bullish but will run into a significant amount of trouble near the $60 level. To the downside, there is a significant amount of support near the 50 day EMA which is closer to the $55.50 level. Underneath there, the $54 level will be targeted for support as well. Looking at the overall market though, we are essentially in a massive consolidation area.

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Crude Oil Video 12.11.19

Brent

Brent markets pulled back a bit during the early hours on Monday as well but turned around to show signs of life again. By doing so it looks as if we are simply going to see more of the back-and-forth trading that we have seen for some time, and therefore I’m not looking for a bigger move quite yet. A break above the 200 day EMA allows the market to go looking towards the $65 level. To the downside, if the market breaks down below the 50 day EMA, then the $60 level will be targeted, perhaps followed by $59 after that. There are a lot of concerns about demand globally, so although the oil markets have been rallying, I think it is somewhat limited in how far it can go longer term. Because of this, I am not looking to put on big positions but day trading and going back and forth makes sense.

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