Singapore Markets closed

Crude Oil Price forecast for the week of November 13, 2017, Technical Analysis

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market spent most of the week rallying, but has ended up forming a bit of a shooting star. I’m not overly concerned about the uptrend yet though, because there should be significant support at the previous resistance barrier in the form of $55. I think that a pullback to this area should offer value the people will be willing to take advantage of. However, if we are below the $54 level, then I would be a seller as it would clear not only the bottom of the exhaustive shooting star, but also a support level. Alternately, if we break above the top of the shooting star, that’s a very bullish sign and should send this market looking towards the $60 handle above. I think that the market is getting a little bit ahead of itself though, so a pullback makes perfect sense.

WTI Video  13.11.17

Brent

Brent markets also rally during the week, but pulled back from the $65 level. I think we will also see a little bit of a pullback this week, perhaps reaching down to the $60 handle. I think that the market continues to find buyers on dips, but ultimately it’s only a matter of time before this pullback comes as we have gotten a bit extended. I think that the $60 level should offer support, but I also think that there is a significant amount of support at the $55 level. It’s not until we break down below that handle that I would be concerned and start shorting, but I do recognize that longer-term we have issues with the Americans, Canadians, and Mexicans coming in and flooding the market with crude oil. The short-term though, looks as if the buyers are willing to put money to work, perhaps after a little bit of value being offered.

Brent weekly chart, November 13, 2017

This article was originally posted on FX Empire

More From FXEMPIRE: