Crude Oil Price Forecast – crude oil shows signs of life

Crude oil markets did bounce a bit during the trading session on Monday, after Saudi Arabia has suggested that they may look into cutting back production. We are also at major round figures in both grades that we follow here at FX Empire, so a bounce does make sense. However jumping “all in” is probably rather difficult at this point.
Christopher Lewis
Crude Oil Midday daily chart, November 13, 2018

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Monday, breaking above the top of a hammer from the Friday session that had formed at the $60 level. We had been oversold, so it’s not a huge surprise that we get a bit of a rally. However, we are still in a very negative trend overall, and it’s not until we clear the $62.50 level that I would think that the momentum will start to pick up again. Alternately, if we break down below the hammer on Friday, this market will continue to go even lower.

Crude Oil Video 13.11.18

Brent

Brent markets also rallied a bit during the trading session on Monday, breaking the top of the hammer from Friday. The $70 level has offered significant support from a structural and psychological standpoint. If we can break above the $72.50 level, then I might be convinced to start putting money to work. Overall though, if we were to break down below the hammer from the Friday session, the market would go much lower, perhaps down to the $67.50 level, perhaps even the $65 level after that. I think that the Saudi discussion of cutting back production may help the market recover some of these massive losses, but at this point it’s difficult to get overly excited about buying oil. I would keep my position rather small because of the potential volatility.

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