Crude Oil Price Forecast – Crude oil markets strengthen after poor number

The crude oil markets broke higher during the trading session on Wednesday, reaching towards the top of a recent consolidation area. As markets are sitting on significant support, it’s not a huge surprise that we have been consolidating in general.
Christopher Lewis
Crude Oil daily chart, October 10, 2019

WTI Crude Oil

The WTI Crude Oil market has shown itself to be rather resilient, as the market rallied after what would have been a very bearish inventory figure out of the United States. As we continue to build more inventory, it shows a significant lack of demand. All things being equal, the $54 level above offers significant resistance, which I think probably also extends to the $55 handle. All things being equal, I suspect that we could pull back from here on short-term charts, but if we were to break above the $55 level, then the market could go much higher. Ultimately, if we pull back towards the $51 level I would anticipate there is a lot of support down to the $50 level, and of course there is also the uptrend line that you should be paying attention to.

Crude Oil Price Forecast Video 10.10.19

Brent

Brent markets of course look very similar, as we have seen the market try to break out to the upside but still continues to deal with $60 as resistance. That was the beginning of the gap higher and could continue to be resistance as well. At this point, if we were to break above the $60 level, then the 50 day EMA comes into play, and could have traders looking towards selling yet again. Ultimately, the $56 level has been massive support that extends down to the $55 level. The moving averages both slope lower, and of course there is a significant concern when it comes to demand.

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