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Crude Oil Forecast: Likely to Rally Further

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

A move down to the 50 day EMA, which I also think will end up being very supported, would be possible if we were to break below the 200 day EMA.

  • The crude oil markets are still seeing strong support, as buyers always jump back in when we pull back.
  • Having said that, I think it's a good idea to consider each dip as a chance to participate in what could be a big mover over the next several months.

WTI Crude Oil

Crude oil prices from Aphex Empire are still fluctuating. Naturally, it makes perfect sense that the WTI crude oil market has been all over the place early in Friday's trading session. 

That being said, I believe that one of the things you should really focus on the most is the $80 level above, which is a large round figure that has clearly provided a lot of resistance and is an area that I believe many people continuously monitor.

Crude Oil Forecast Today 11/03: Likely to Rally (Graph)Having said that, I think it makes sense to continue buying short-term pullbacks. A move down to the 50 day EMA, which I also think will end up being very supported, would be possible if we were to break below the 200 day EMA.

Brent Oil Forecast Today 11/03 (Graph)

Brent

There is still a lot of back and forth activity for traders on the Brent Market. However, the 200 day EMA underneath still provides a lot of resistance, just like their counterparts in the WTI market. We may be able to move higher and possibly even reach the $90 level if we can break above the important resistance level of $84.50. Short-term retreats remain strategies that people are prepared to support.

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And given that we are approaching the time of year when demand starts to pick up and supply is already weak, I do believe that both grades of crude oil eventually take off. In addition, there are numerous geopolitical tensions in the Middle East as a whole and in the Red Sea. Thus, that will keep a small portion of the floor beneath oil at first.

People will be anticipating higher energy demand as cheap money encourages a lot of investment, which is another reason why central banks around the world may be lowering interest rates, which could lead to an oil price rally. I'm optimistic. I don't want to short anything. Please give me a thumbs up and subscribe to the channel if you enjoy the video.

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Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

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