Crude Oil Price forecast for the week of October 2, 2017, Technical Analysis
WTI Crude Oil
The WTI Crude Oil market initially try to rally during the week to turn around and form a shooting star. This is a very negative technical signal, and if we break down below the $50 level, I think we dropped towards the $47 level next. If we break above the top of the candle for the week, that’s obviously bullish sign, as it would be not only breaking higher, but it would be breaking down below recent resistance. Oil markets continue to be very choppy and dangerous places to trade, so quite frankly I think that waiting for a significant move is probably going to have you on the wrong side of the trade. Longer-term traders will probably continue to be frustrated by this market.
WTI Video 02.10.17
Brent
If the West Texas Intermediate markets look a bit soft, the Brent market looks horrible. We ended up forming a massive shooting star right above the $59 level, and are closing the week saw the $57. I believe that a breakdown below the weekly candle shoots in this market much lower, as it looks like we have gotten far ahead of ourselves. We could be looking at a move down to the $55 level, followed by the $52.50 level after that. The oversupply of oil continues to be an issue, and there doesn’t seem to be much that can be done about it. With the crude oil markets rebounding production capability the way they have after the hurricane and threats out of OPEC, I just don’t see where a longer-term rally can be sustained. Because of this, we have almost certainly gotten ahead of ourselves, and this pullback should be healthy at the very least, if not destructive to the uptrend.
This article was originally posted on FX Empire