Crude Oil Price Forecast – Slight Pullback Going Into The Weekend

The crude oil markets initially tried to rally during the trading session on Friday but did find a little bit of a pushback later in the day. With this, it looks as if we will continue to consolidate in the short term in order to build up a bit of a base.
Christopher Lewis
Crude Oil daily chart, October 21, 2019

WTI Crude Oil

The West Texas Crude Oil market as tried to rally initially during the trading session on Friday but found enough resistance near the psychologically and structurally important $55 level to pull Bank and show signs of fatigue. This is at the top of an area of support that of course is trying to form itself based upon what we have seen over the last couple of weeks. At this point in time, I believe that the $50 level underneath offers a lot of psychological and structural support that could lead this market into building a bit of a range. Where can we go from here? I believe that the $60 level will be the ultimate destination, but we need to clear a lot of noise between here and there before it happens. In the short term I think a simple range bound strategy between $55 on the top and $52 on the bottom could make some sense.

Crude Oil Inventories Video 21.10.19

Brent

Brent markets have tried to break out above the $60 level during the trading session on Friday but rolled over to show signs of fatigue again. At this point in time, it looks as if Brent is trying to form a base over here as well, with the $56 level being the floor. The 50 day EMA is currently trading at the $60.62 level, so if we can break above that it would open up the door to much bigger gains, perhaps reaching towards the 200 day EMA which is just shy of the $64 level.

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