Crude oil drifts slightly lower during Tuesday session

WTI Crude Oil

The WTI Crude Oil market went sideways initially during the trading session on Tuesday but drifted towards the $65.50 level. That’s an area that was minor resistance in the past, so it makes sense that we might bounce from there. I think that the market breaking below the $65.50 level could send the WTI traders looking for the uptrend line below, which is closer to the $63 level. I don’t have any interest in shorting this market, we have seen far too much in the way of bullish pressure as of late, but I do think that we go lower in the short term, perhaps in a bid to find value after we got a bit ahead of ourselves due to the tensions in the Middle East.

Brent

The Brent market drifted a bit lower during the trading session on Tuesday, reaching down towards the $70 level. That’s an area that has been resistance in the past, so it should now be support. I think that there is also support underneath that the uptrend line, so I believe it’s only a matter of time before the buyers get involved. I look at pullbacks as an opportunity to take advantage of value, at least if we can stay above the uptrend line. If we were to break down below the uptrend line, that could change a lot of things. However, that doesn’t look very likely to happen currently, and even though I think we do drift a bit lower, it’s only a matter of time before the buyers get involved.

Oil Forecast Video 18.04.18