Crude Oil Price Forecast – Crude oil markets rocket higher to kick off week

The crude oil markets shot higher to kick off the week on Monday, showing signs of resiliency yet again. At this point, the market is likely to continue to reach towards the next obvious resistance barrier, as we have seen such a powerful turnaround.
Christopher Lewis
Crude Oil daily chart, October 08, 2019

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken higher during the trading session on Monday, clearing the top of the shooting star shaped candle stick from Friday. Beyond that, it also broke above the top of the hammer from the Thursday session, which formed what looks like a short-term bottom. Beyond all of that, there is also an uptrend line that has supported that hammer, and then the $51 level has been rather important more than once, forming what I believe is essentially a “support zone” that extends down to the $50 level. Just above though, I would anticipate that the $55 level will cause a bit of resistance not only from a psychological standpoint, but perhaps even a structural standpoint as it was previous support.

Crude Oil Video 08.10.19

Brent

Brent markets of course have done essentially the same thing with the $56 level offering the floor. The 50 day EMA above should offer a nice target, but the $60 level just above the candle stick of course offers psychological resistance. At this point, the $60 level will push back but I think the market probably extends above there, if just slightly. To the downside, the $57.50 level is the first support level, followed by the previously mentioned $56 level. The $56 level is much like $51 level in the WTI grade of crude, as it is the beginning of the $1.00 level support level as well. All things being equal, I do think that support should hold, but if it doesn’t, this market could wipe out to the downside.

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