Crude Oil Price Forecast November 21, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market has rolled over during the day on Monday, slicing through the $56 level at one point. However, we are starting to see a little bit of a bounce, but quite frankly I would not be surprised at all to see this market reach a bit lower, perhaps down to the $55 level before finding massive support. If we were to break down below there, it’s likely that we will go down to the $53.50 level. The market continues to be very volatile as we have Middle East tensions, but quite frankly if the oil markets get a little too far ahead of themselves, it’s likely that drillers will increase production in North America, offsetting that demand. I think that the upside for crude oil is somewhat limited, and it may be a hard fight to get to the $60 handle. Expect volatility and a bit of range bound trading.

Crude Oil Video 21.11.17

Brent

Brent markets of course followed a very similar path during the trading session, reaching down to the $61.50 level. I think there is a significant amount of support near the $61.25 level, and even more so closer to the $60 handle. The market should continue to be very noisy, and therefore it’s likely that we will see very difficult conditions going forward, and small position sizes will be required. Because of this, I prefer the CFD markets, because at least then we can mitigate some of the risk by trading the appropriate size. Futures markets are going to be very difficult to deal with. I also believe that if we can break above the $62.80 level, then we will go looking towards resistance at $64.50. If we were to break down below $60, at that time I would anticipate a move towards the $58.50 level.