Crude Oil Price Forecast November 2, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially rally during the day on Wednesday, but found enough resistance near the $55 level to roll over. The daily candle is starting to look rather negative, and I think that the market could find itself reaching towards the $52.50 level. A breakdown below the $53.75 level has me selling, as the market may have gotten a bit overextended. Alternately though, if we break above the $54.50 handle, then we go back to the $55 region. The market should continue to be very noisy, because quite frankly even though we have a lot of production cuts being discussed, the reality is that Americans will try to flood the market with product at high levels. If we were to break above the $55 level, we should then go to the $57.50 level over the longer term. Regardless, oil market should continue to be very noisy.

Crude Oil Price Forecast Video 02.11.17

Brent

Brent markets rallied initially as well, testing the $61.66 region, then falling and rolling over to the $60 handle. That’s an area that is massively resistive, but has been supportive in the past. As I write this, we are starting to see buyers jump back into the market, so I think we’re going to try to reach towards the $61.66 level again. Clearing that level should send this market even higher, perhaps to the $62 level, and eventually the $62.50 level. If we break down below the $60 level, it’s likely that the market will go down to the $58.50 level. I think Brent will be very noisy, but I have clear parameters to trade, and therefore will place my orders, in both directions, and simply wait for the market to tell me which direction it wants to go next.