Crude Oil Price Forecast October 5, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the day on Wednesday, reaching towards the $50.50 level. We broke down below the $50 level and continue to show quite a bit of volatility. I think that there is a significant amount of support down to the $49 level, and therefore I would wait until we break down below the $49 level to start selling. Once we do, then I think the market goes down to the $46 level. Even though we have seen quite a bit of negativity in this market, I believe that the area below will probably find buyers. Because of this, I expect a lot of choppiness, but on a move above the $50.80 level, I am more than willing to start buying. Either way, I think we will eventually get a significant move that we can trade.

Crude Oil Price Forecast Video 05.10.17

Brent

Brent markets also were volatile during the day, initially trying to rally but found enough resistance at the $56.25 level to roll over. By doing so, it looks likely that the market will test support below, near the $55 handle. A breakdown below there since the market down to the $52.50 level, and then eventually the $50 handle. However, if we were to break above the $46.50 level, the market would probably start rallying again. I think that there is going to be a significant amount of volatility in the crude oil markets, regardless what happens next. You are probably best served by trading options, because at least you can mitigate a lot of the danger. However, for those of you are willing to trade CFD positions or perhaps even futures markets, the levels mentioned are the areas that you need to be watching to do so.