Crude Oil Price forecast for the week of October 16, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market rallied during the week, slicing through the $50 level again, as it looks like we are starting to pick up momentum. Ultimately, the $52.50 level above has been resistive, so I think that’s where were going next. If we can break above there, then the market will be free to go to the $55 level, where I would expect to see a significant amount of resistance. A break above there is very bullish, but I don’t see it happening quite yet. I think we continue to bounce around overall, as there are many moving parts to the oil markets right now that keep both sides of the argument in check. The Saudi’s and the Russians are talking about cutting production, but at the same time if pricing goes to high, Americans come in and start drilling more. Because of this, I think long-term traders are going to continue to be frustrated.

WTI Video 16.10.17

Brent

Brent markets rallied a bit during the week, after initially trying to test the $55 level for some type of support. We rallied from there to reach above the $57 level, but you can see that the shooting star from 2 weeks ago fell after initially trying to reach towards the $60 level. It is because of this that there should be plenty of resistance above, and I don’t think that we will break above the $60 handle. If we do, that’s obviously very bullish sign, but in the meantime, I think we are ready to see a bit of consolidation, so again, I think that we have a situation where short-term traders will continue to go back and forth and longer-term traders will be frustrated. If we break down below the $55 level, we then could go to the $52.50 level.