Crude Oil Price Forecast – crude oil tries to bounce

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the trading session on Wednesday, and quite frankly needed to considering that we had wiped out so much in value over the last several weeks. I think at this point, we are very likely to see a bounce but this is a market that is going to be difficult to hang onto. If we can get a couple days of stability, that might be exactly what this market needs. If we break down below the $55 level, then it’s likely that we break down to the $50 handle. I think the one thing you can count on is a lot of volatility and choppiness, but it does look like we are trying to pick up a little bit of stability here as crude oil has quite frankly gotten too cheap.

Oil Forecast Video 15.11.18

Brent

Brent markets bounced from the $65 level, an area that of course should make sense for support as it has wiped out the entirety of the move. I think at this point, a lot of value hunting will start to occur, and I think what we are going to see is an attempt to build some type of consolidation. Breaking below the $65 level does open the door to the $62.50 level, and then eventually the $60 handle. However, with this type of wipeout, one would have to think at the very least there’s going to be short covering rather soon, if not value hunting for longer-term investors and possibly commercial interests that come into the futures markets. The risk to reward ratio certainly favors a move higher eventually.