Crude Oil Price Forecast November 5, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market has been very choppy to say the least, as the Friday session rallied significantly, but then turned around later in the day, only to fall apart again on Monday. We are now testing the $57.50 level, and that given enough time should be an area where we find buyers. However, I also look at the $57.50 level as essentially “fair value” in the market, as breaking below there will probably find support near the $57 level. I think that there are far too many issues floating around the oil sector between OPEC and American drillers jumping on higher prices to keep this market very choppy and difficult to navigate.

Crude Oil Video 05.12.17

Brent

The Brent market gapped lower at the open as well, and then broke down to the $62.75 level. At this point, I think that the market may rally from here and try to fill that gap, but ultimately, I think that there is still a significant amount of resistance above, near the $64 handle. That area should be massively resistive, and at this point I don’t think were to break above it easily. The US dollar strengthening could also weigh upon the Brent market as well, and with the oil markets being so volatile, I don’t like trading this market, but recognize that small position sizing is about the only thing you can do to protect yourself. Use the CFD market, do not try to go and heavily into the futures market as the ticket value is far too high for many of your trading accounts, and the volatility could wipe you out rather rapidly.