Crude Oil Price Forecast November 7, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market gapped higher at the open on Monday, and then went sideways before it eventually rallied. The 24-hour exponential moving average continues to offer support, and of course the weekend purge in Saudi Arabia has a lot of uncertainty flowing into this market. The concerns of trouble and petroleum supply coming from that country should continue to put a bit of a bid into the market, as the $55 level underneath should offer support. I believe that the market is probably gunning for the $60 level above, which is the next large, round, psychologically significant figure. Eventually, I expect the recount in the United States to climb, turning this market around. However, and the short-term and looks likely that we will continue to see the buyers push this market which is obviously breaking out.

Crude Oil Video 07.11.17

Brent

Brent markets rallied during the day as well, reaching above the $63 level. The $65 level above is resistance, as it is a large, round, psychologically sick number as well. I think that pullbacks will be buying opportunities, and the “floor” in the market is the $60 handle. I think that in the short term, pullback should be buying opportunities as they represent value. I think that the market will eventually find its way towards the $65 level, and it’s only a matter of time before this becomes a self-fulfilling prophecy. If there’s any more trouble in Saudi Arabia, that should only turbocharge the move higher, especially if the US dollar falls at the same time. Overall, I do think that the short-term oil outlook is positive, but longer-term I think it gives us an opportunity to sell it even higher levels. However, I would not try to step in front of this freight train.