Crude Oil Forecast April 26, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the Tuesday session, but found enough resistance at the $49.50 level to turn things around and form a bit of a shooting star shaped candle. Because of this, I believe that the market will continue to struggle, and I also believe that the $50 level above will be resistive. Keep in mind that today is the Crude Oil Inventories announcement, and that will more than likely keep this market very volatile. I think that the market will chop around quite a bit, but a breakdown below the bottom of the range for the day on Tuesday could send this market down to the $47.25 level underneath. Either way, expect a lot of noise during the US session as we continue to see the market focus on supply issues.

Oil Forecast Video 26.4.17

Brent

Brent markets also tried to rally during the session but just like the WTI grade, turned around to form a bearish candle. Because of the shape of the scandal, I believe that this market is apt to continue falling, and therefore have no interest in trying to buy it. I think that the market will then go down to the $50 level over the longer term, and rallies at this point should be selling opportunities near the $53 handle.

A break above the $53 level would be rather bullish, but I do not expect to see that happening anytime soon. The market should continue to find sellers going forward as we have in oversupply of crude oil, and are starting to see a buildup and gasoline around the world. This means that demand could be dropping, and that’s even more bearish news for the crude oil complex.

I think that the $50 level will be massively supportive, so breakdown below there would make quite a statement and send this market much lower. With this being the case, I think that the market is one that’s going to be very choppy, but I would not be surprised at all to see this market breakdown.