Crude Oil Price Forecast October 20, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market showed signs of resiliency after initially falling on Thursday. The $51 level offered enough support to turn things around and break towards the $51.75 level. I think that the market is trying to consolidate, perhaps building enough momentum to reach above and touch the $52.50 level. I think that overall, the oil markets will continue to struggle to find clarity, because there are several things pushing them around at the same time. True, the Saudi and Russian governments are looking to cut production, but at the end of the day every time the market rallies too much, the Americans, Canadians, and Mexicans of course are willing to flood the market with supply. I think there is a massive amount of support below the $50 level, and I think right now we are just going to continue to bounce between $50 on the bottom, and $52.50 and on the top.

Crude Oil Forecast Video 20.10.17

Brent

Brent markets continue to be volatile as well, initially dropping down to the $57 level, which is the 50% Fibonacci retracement level from the most recent move. It’s also the bottom of the gap from several days ago, so it’s likely that it will continue to be important. Because of this, I fully anticipate that the market is going to bounce again, and look for the highs. I expect a lot of noise, and continue to be suspicious of any trade that goes on for too long. Overall, I think that we will probably go looking towards the $60 level, but is can be very noisy between now and then. If we were to break down below the $56.75 level, then I would be a seller as we should then drop towards the $55 level. Expect noise, but that’s nothing new in the oil market.