WTI Crude oil, Wednesday forecast, November 6
Oil market inventories are oversupplied, which creates pressure for a downtrend. Yesterday we had API news and they were +4.2 million barrels. Today, we have inventories news and if they will be over 0 or above it, this will increase downtrend potential.
Forecast and technical analysis
Downtrend
The downtrend may be expected to continue, while oil is trading below resistance level 57.43, which will be followed by reaching support level 56.29 and if it keeps on moving down below that level, we may expect oil to reach support level 54.77.
Uptrend
The uptrend may be expected to continue in case the market rises above resistance level 57.43, which will be followed by reaching resistance level 58.15, 59.25.
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Weekly forecast, November 4 - 8
This year oil inventories oversupplied against 5 years inventories that can push oil prices down. At the same time during the US-China trade war, we still do not see world economic recovery, the Eurozone Manufacturing PMI is below 50 points that is saying a lot about the EU recession.
Trade war still continues and even its phase one not finished. Fed said that will not continue to decrease % rates, as the US economy looks already good, but this is only an intermediate view on the US economy and looking at economic indicators we can’t say that the US already has a clear economy uptrend. Oil now trading on long-term resistance over price 57.00 that should push prices down to support 53.80.
Forecast and technical analysis
Downtrend
The downtrend may be expected to continue, while oil is trading below resistance level 57.00, which will be followed by reaching support level 53.86.
Uptrend
An uptrend will start as soon, as oil rises above resistance level 57.00, which will be followed by moving up to resistance level 58.15, 59.25 and 60.20.
(Click on image to enlarge)
Monthly forecast, November - December
Downtrend
The downtrend may be expected to continue, while oil is trading below resistance level 57.00, which will be followed by reaching support level 53.86 - 52.79 and if it keeps on moving down below that level, we may expect oil to reach support level 50.52.
Uptrend
An uptrend will start as soon, as oil rises above resistance level 57.00, which will be followed by moving up to resistance level 60.20.
(Click on image to enlarge)
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