Crude Oil Forecast August 8, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market has been very choppy during the session on Monday, but we are starting to see some resiliency as Americans come in. I believe currently that the market is going to consolidate between the $48.50 level on the bottom, and the $49.60 level on the top. There probably isn’t going to be much to move the market over the next session or so, so expect choppy and back and forth type of conditions that are perfect for scalping and range bound trading. Currently, the market probably has more of an upward proclivity based upon longer term charts, but I am not overly convinced one way or the other.

Crude Oil Video 08.8.17

Brent

Brent markets might be a bit more resilient, but I think we need to clear the $52.50 level significantly to go higher. At that point I would anticipate that the market should go hunting the $55 level above. It looks as if the $51.50 level underneath is causing a bit of support, and could be a bit of a “floor” in the market short-term. Even with the US dollar rising, I think that the oil markets are showing signs of resiliency due to increased hopes that production cuts are starting to work. Longer-term though, I think that we still have major issues in so much as Americans are willing to drill with these higher prices coming. Given enough time, the market will continue to find bearish pressure, but in the short term it looks as if OPEC is finally starting to turn things around.