Crude Oil Price Forecast November 6, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the week, slicing through the $55 level. That is an area that is massively resistive, and that we have broken above that tells me that the buyers are coming back into the market. I think the $60 level above is the target, and I believe the pullbacks are going to be buying opportunities. Oil markets look very healthy, and we have broken above a major resistance barrier. If we break down below the $54 level, the market should roll over and go to the $50 level at that point. Given enough time, I believe that we will continue to see choppiness, but then given enough time I think that the oversupply of oil return. Obviously, we are not seeing that right now.

WTI Video 06.11.17

Brent

Brent markets initially fell during the week, but found enough support at the $60 handle to turn around and rally. We are closing at the week at the top of the range, so that is a very bullish sign, and I think that we will continue to see upward pressure, perhaps reaching toward $65 next. If we were to break below the $60 level again, that would be negative and send this market looking for $58 level below. However, I think that more than likely we will continue to see the strength in general, so I like buying dips and recognize that $65 is the next large, round, psychologically significant number.

The fact that the oil markets can rally in the face of the stronger US dollar is also a sign of just how bullish things have gotten. However, I do recognize that eventually the Americans flood the market with supply, even though we are starting to see tightening of the supply chain worldwide.