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Crude Oil Price Forecast – Crude oil markets continue to struggle

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market rallied right off the bat on Monday, reaching towards the $55 level before pulling back and showing signs of weakness again. However, the intraday charts are starting to show signs of support underneath, so at this point it makes sense that we could see some type of back-and-forth trading, but keep in mind that the weekly candle stick from last week is a hammer, which of course is a very bullish sign and perhaps an opportunity for buyers to step in and try to defend the bottom of it, which is closer to the $50 level.

Crude Oil Video 11.06.19

Brent

Brent markets also tried to rally initially during the trading session on Monday but turned right back around to fall back down. This is a bit more bearish looking candle stick, so it’s possible that Brent may drag the rest of the market right down with it. However, I also see a significant amount of support coming in at about $62 and extending down to the $60 level. Ultimately, we are trying to form some type a bottom here, but it’s going to take a lot of work. After all, we had sold off rather drastically, and therefore there is still a lot of negativity out there. However, the fact that we formed hammers in both grades on the weekly chart last week tell me that there is an attempt to support this market, but if we did break down below the $60 level we could unwind rather drastically.

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This article was originally posted on FX Empire

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