Crude Oil Price Forecast – crude oil markets clinging on to hope

Crude oil markets have been bullish again during the trading session on Thursday, slamming into the $67.50 level in the WTI grade as an example. What I find interesting about this chart is that we are certainly trying to rally but have broken through so much technical support that the next couple of days could be crucial. · FX Empire

Christopher Lewis

Updated Thu, Oct 25, 2018, 10:31 PM

WTI Crude Oil

The WTI Crude Oil market rallied again during the day on Thursday, slamming into the $67.50 level, but has pulled back a little bit from there. The market is starting to see the 50 day EMA rollover, and we are now at the 78.6% Fibonacci retracement level, something that I don’t put a lot of faith into normally. However, there is one glimmer of hope here in the sense that the Wednesday candle is a bit of an inverted hammer. If we can break above that inverted hammer, that’s actually a really bullish sign. I don’t know that that means that oil will go reaching towards the highs, but it could go to the $70 level. Alternately, if we break down below the lows of the nasty Tuesday candle, this market will reach towards the $63.50 level.

Brent

Brent markets rallied a bit during the trading session on Thursday, but still remained within the doji that formed on Wednesday. This tells me the market isn’t quite ready to take off yet, and the fact that we are starting to give back some of the gains later in the day is probably a good sign as well. The 50 EMA is starting to rollover, and I think at this point we will probably see selling. If we can break down below the psychologically significant $75 level, I think the downside will accelerate, perhaps reaching towards $71 by the time it’s all said and done.