Crude Oil Forecast April 27, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market had a very bullish session on Wednesday, slamming into the $50 level but finding resistance there. The Crude Oil Inventories announcement was more bullish than anticipated, so that gave the market a little bit of a boost. However, I don’t think that we can buy this market until we break above the top of the range for the day, and clear the $50 level handily. In the meantime, it almost looks as if we are grinding sideways and essentially getting ready to consolidate. I think that there are a lot of issues out there to worry about currently, so this market will continue to be very dangerous. A break above the top of the range for the day should send this market to the upside, just as a breakdown below the bottom of the range should send this market down to the $47 level again.

Crude Oil Forecast Video 27.4.17

Brent

Brent markets also went back and forth during the day, showing signs of volatility near the $52 level. If we can break down below the bottom of the candle for the Tuesday session, that will all but guarantee a move down to the $50 handle. On the other hand, if we break above the top of the range for the day on Wednesday, the market should then reach towards the $53 level which was previously resistance, and before that support in the previous consolidation box. Either way, I think that were going to get a lot of volatility in choppiness, and you also must pay attention to whether we have some type of headlines crossing the wire the can move the markets again. There are still a lot of concerns about whether OPEC can do the production cuts, and of course whether there is enough demand. The demand seems to be a very choppy issue, so even with the pickup and demand over the last week, we have missed more than we have hit on those numbers, so I think we will continue to see nervous traders in this market.