Crude Oil Weekly Price Forecast – Crude Oil Markets Continue To Grind Sideways

The crude oil markets have been stuck in a consolidation area for quite some time and have shown no proclivity to break out of that consolidation area during the previous week. With that, more of the same is to be expected.
Christopher Lewis
Crude Oil weekly chart, November 04, 2019

WTI Crude Oil

The West Texas Intermediate Crude oil market has fallen during most of the week but showed signs of recovering a bit towards the end of the week. That being the case, the market is likely to continue to show signs of resiliency and perhaps even an opportunity to reach toward the top of the rectangle that I have drawn on the chart. Ultimately, this market looks like it is range bound in general and that makes quite a bit of sense considering that OPEC is threatening production cuts, while at the same time we need to worry about whether or not there is going to be demand globally due to a shrinking economy.

WTI Video 04.11.19


Brent markets also look very similar, showing signs of stagnation but I do think that there is enough bullish pressure underneath the turn this market around and have it looking towards the $65 level. I like buying short-term pullbacks, as it gives us an opportunity to take advantage of you can quote cheap crude.” I don’t expect explosive moves to the upside though, and quite frankly at this point I think it’s probably easier to trade this grade of crude oil from a shorter-term standpoint such as a four hour chart. That being said, I think more of the same is coming for Brent, and therefore I think that playing the extremes of both support and resistance at $57 on the bottom and $70 on the top probably plays out quite well for most of the winter.

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