Crude Oil Forecast September 26, 2016, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially tried to rally on Friday, but found the area above the $46 level to be far too resistive to continue going higher. Because of this, we reached down towards the $45 level, and I believe at this point in time that we are going to grind our way back down to the $43 level below which has been massively supportive. I have no interest in buying this market at the moment, and I do believe that given enough time we will selloff. Ultimately, I think that rallies at this point in time will continue to find sellers, as we continue to grind. If we do break down below the $43 level, the market should then reach down to the $41 level, and then eventually the $40 level after that. Oversupply continues to be a significant problem.

 

Brent

Brent markets initially rallied during the course of the session Friday, testing the $48 level above. This is an area that is massively resistive, and as a result it’s not a surprise that we turned right back around to form a rather negative candle. I believe at this point in time the market should then reach towards the $46 level, perhaps even the $45 level below that. If we break above the $48 level, I think at that point in time the market may try to find sellers at $50, but that’s probably the least likely of the 2 directions that we will go.

Once we break down below the bottom of the hammer from earlier this week, I feel that the market will then reach towards the $44 level, and then eventually the $42 level after that. I do believe that the bearish pressure continues in this market, and that regardless that the Saudi Arabian government suggested that it would cut oil production if Iran did the same, let’s face it: those 2 countries don’t exactly have a very long history of working together and it seems very unlikely that they will do so at this point in time.