Crude Oil Price Forecast October 4, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market went back and forth during the session on Tuesday, showing signs of support just below at the $50 level. I believe that the level is very important, both psychologically and structurally. If we break down below the $50 level, the market has support at the $49 level as well. If we break down below the $49 level, the market should continue to go much lower. That would of course be very bearish, and send this market to much lower levels, possibly the $46 handle. Alternately, if we break above the $50.75 level, this market probably will reach towards $51.50 after that. Either way, I expect volatility, but I think that there are a couple of clear-cut areas that you can pay attention to in order to get an idea as to where we are going next.

Oil Forecast Video 04.10.17

Brent

Brent markets have also gone sideways in general, although in a much more volatile manner. I believe that if we can break down below the $55.50 level, we will probably test the $55 level after that, and a breakdown below there should send this market much lower. Alternately, if we can break above the $56.50 level, then the market probably continues to reach towards the $57.50 level after that. There is a lot of noise in this market, but I think that oil markets in general have been very negative over the last couple of sessions. Given enough time, I think that the sellers should continue to be aggressive in this market as the oversupply continues, and of course as price rises, American, Canadian, and Mexican rigs expand production as OPEC has no control over what happens with those companies. Longer-term, I believe that crude oil continues to have a lot of structural issues.