Crude Oil Price Forecast October 17, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market shot straight up at the open on Monday, as it was reported that Iraqi soldiers entered Kurdistan. By doing so, it threatened the oil supply, but it appears that there isn’t a major bit of resistance, so that could soften the potential of rallies at this point. I still think that the $52.50 level above offers resistance, and therefore I think that is can be difficult to break above there. I think that given enough time, the sellers will return, but if we were to break above the $52.50 level, then I think the market goes to the $53 level next. Oil markets will continue to be very noisy, and the Iraqi military getting involved of course does not help. Ultimately, caution will be needed overall, as most of this move is probably based upon headlines, which of course are a bit of a moving target.

Crude Oil Video 17.10.17

Brent

Brent markets gapped higher at the open on Monday, opening near the $57.75 level. We rally from there to reach towards the $58.50 level, but then pulled back to try to fill that gap. I think that there are plenty of buyers underneath, and I think that eventually Brent markets will reach towards the $60 handle above, which is massive resistance, not only from the psychological standpoint, but from the structural standpoint as well. I believe that the noise will continue to be very loud in the Brent markets, but ultimately it looks as if the buyers are probably going to run the show here, least in the short term. Ultimately, the market should continue to be noisy, so therefore I would be very careful about my position size over the next several sessions as it can be very destructive if ignored.