WTI Crude Oil
The WTI Crude Oil market rolled over during the trading session on Monday, breaking down towards the $65 level underneath. That of course is a large, round, psychologically significant number, and has been resistance in the past. It makes sense that we may see buyers come back into the market, so therefore I like the idea of buying on some type of bounce or supportive candle. However, if we were to break down below the $64.50 level, I think we may have to drop down to the $63.50 level next. I believe that not only are we overbought, but I believe that the US dollar strengthening has had an effect as well.
Crude Oil Video 30.10.18
Brent
Brent markets sliced through the $70 support level significantly during the day on Monday, reaching down towards the $69.50 level. The $69 level underneath will be supportive as well, just as he $60.50 level will be. If we were to break down below there, the market will probably break down towards the $65 level, so I think between now and then we have a lot of noise. If we can break above the $70 level, I would be a buyer there as well, as it would show a sign of momentum picking up again. Ultimately, the market should continue to find buyers in the US dollar can roll over, but the Monday session was strong for the greenback. I believe there are massive amounts of support underneath, extending down to the $68.50 level. Because of this, I’m not interested in selling quite yet, as there is more than likely going to be some type of bounce or buying opportunity.
