Crude Oil Forecast July 29, 2016, Technical Analysis

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Published: Jul 29, 2016, 05:20 UTC

WTI Crude Oil The WTI Crude Oil markets initially tried to rally on Thursday, but turn right back around to fall. With this being the case, the market

WTI Crude Oil

The WTI Crude Oil markets initially tried to rally on Thursday, but turn right back around to fall. With this being the case, the market should continue to find sellers, and I believe that any rally at this point in time is probably going to be a nice selling opportunity. With this, I think that the $44 level above should be a bit of a ceiling, and as a result it’s likely that any rally at this point in time should offer an opportunity to sell yet again. I believe that we’re going to reach towards the $40 level, and I also believe that the market could continue to go much lower than that, especially considering that there is a serious lack of demand and the US dollar of course continues to strengthen. With this being the case, it’s likely that this market will struggle regardless of what happens.

Brent

Brent markets initially tried to rally during the day as well, but also found quite a bit of bearish pressure to turn things back around and sliced through the $43 level. The $42 level below looks like a target, just as the $40 and the $38 level do as well. Ultimately, I think that any rally is going to struggle with the $46 level above, which was previously so supportive. That should now be resistance, and with this I think that it is only a matter of time before the sellers take over yet again. Keep in mind that the Brent market tends to be more affected buying the European Union and the United Kingdom, both of which are areas of concerns at the moment. With this, it makes sense that this market will probably fall faster than the WTI Crude Oil market, although I believe that neither one of them is a market that I want to start buying, so having said that I think you could sell either and probably get very similar results, but believe Brent is probably overall a little bit more in danger currently with everything that we are seeing coming out of the continent.

Brent daily chart, July 29, 2016

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.