WTI Crude Oil
The WTI Crude Oil market broke down during the course of the week, reaching down to the $55 level, an area that of course offers a lot of psychological significance. The area has been supportive in the past, so it’s not a huge surprise that the market bounced a bit from here. Quite frankly, it had gotten so oversold that a bounce was almost inevitable. The question now is whether or not we can hang onto that? I think it is early to jump in and start buying oil, but by the end of this coming week we may have some answers. If we break down below the $55 level, then we will go down to the $50 level. Ultimately, if we rally from here we may test the $60 level.
WTI Video 19.11.18
Brent
Obviously, Brent markets would suffer the same fate but have shown some resiliency at the crucial $65 level. I suspect that we could bounce from here and look towards the $70 level for resistance. If we can break above there, then we have to deal with the previous uptrend line. I think at this point the market continues to be a bit negative until we can break above that uptrend line, but right now I suspect that we will probably get some type of short-term bounce. Otherwise, if we were to break down below the $65 level, then it opens the door to the $60 level next. Regardless of what happens, you can expect a lot of noise.