Crude Oil Price Forecast – Crude Oil Markets Recover On Thursday

Crude oil markets recovered a bit on Thursday, wiping out most of the gains from the Wednesday surprise inventory figure. At this point, it looks as if the market is simply continuing more of the same back-and-forth action.
Christopher Lewis
Crude Oil daily chart, November 08, 2019

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied again during the trading session on Thursday, breaking above the 200 day EMA again. More importantly, it wiped out a lot of the selling pressure from the previous session, and as a result it looks as if the market is simply going to sit here in general. At this point, the $56 level underneath continues to offer short-term support. The $58 level above would be the resistant level, and at this point it looks as if we simply grind back and forth in this general situation.

Crude Oil Forecast Video 08.11.19

Brent

Brent markets continue to go back and forth during the trading session on Thursday, as we are basically hanging about the $62.50 level. At this point, the market is trading between the 50 day EMA on the bottom and the 200 day EMA above. As it is to moving averages are getting ready to converge, it’s very likely that the market will continue to be very choppy and difficult, as we don’t have much in the way of directionality in the short term. Longer-term, you can see that we are in a larger consolidation area, and therefore it’s going to be a fight for the market to break out to huge moves. I think simple back-and-forth trading between these two moving averages on short-term charts probably makes the best trade plan at the moment. There is the possibility OPEC cut production in December, just as there is a significant amount of supply out there that can’t be soaked up. The market has nowhere to be, so back-and-forth continues.

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