Crude Oil Price Forecast October 10, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market was very volatile during the day on Monday, as we bounced around the $49 level. That’s an area that is supportive, and if we can stay above there, there is a bit of hope for the oil markets. However, if we break down below the $49 level, the market should go looking towards the $46 level underneath. I would not be a buyer though, least not until we can clear the psychologically important $50 handle. I think this is an area that is going to be very noisy and very dangerous for oil traders, so keep your position size small. I would become rather aggressive below $49 though, as it would be a continuation of the ugliness that we have seen in this market as of late.

Crude Oil Video 10.10.17

Brent

Brent markets fell significantly during the Monday session, but found enough support at the $55 level to bounce significantly as well. In fact, as I write this it appears that the market is going to try to form a hammer for the day, and that of course is a very bullish sign. If we do get a breakout to the upside and above the $56 level, it’s likely that we will go looking towards the $57 level next. The alternate scenario is a breakdown below the $55 handle, which would be very negative. A breakdown below that level could send this market to the $52.50 level, which would be the next support barrier that I see. However, it’s likely we would break down below there and look towards the $50 level for more substantial support. The market continues to be volatile, but towards the end of the session on Monday it looks as if the buyers are starting to make a stand.