Crude Oil Price Forecast – Crude Oil Markets Recover

Crude Oil Prices Forecast Video for 11.12.23

WTI Crude Oil Technical Analysis

The crude oil markets have rallied a bit during the trading session on Friday, as we continue to recover from the massive plunge. That being said, I don’t necessarily think this is a situation where you want to chase performance, and I do believe that it is probably only a matter of time before sellers come back into the market. In fact, I think that there is a significant ceiling just above at the $72.50 level you must pay attention to, because it was such an important support previously. A bit of “market memory” probably comes into the equation at that point.

I stated yesterday that I thought this would be a “sell the rallies” type of situation, and so far it looks like that might actually be coming true. We did rally a bit early on Friday, but I think ultimately a lot of people are still expecting a global slowdown which of course works against the value of crude oil. If we continue to sell off, we could drop as low as $67.50 underneath.

Brent Crude Oil Technical Analysis

Brent markets also have rallied a bit during the trading session on Friday, as it looks like we are trying to get to the $77.50 level above. That’s an area that was support in this market, and therefore it should serve as a bit of “market memory” to keep the market down. At this point, I do favor selling rallies and it seems like traders agree with me late in the day on Friday. The rally could partially be due to the jobs number, but at the same time it could partially be due to simple profit-taking by those who shorted the market.

Keep in mind that we are getting close to the holiday season now, and therefore it’s likely that liquidity will start to become a bigger issue. In that environment, oil can get quite squirrelly, showing signs of erratic behavior and danger for everybody involved. With this being the case, I think you need to be very cautious with their position sizing but recognize that we are still very much in a downtrend and plunging toward support underneath.

For a look at all of today’s economic events, check out our economic calendar.