Crude Oil forecast for the week of July 21, 2014, Technical Analysis

Light Sweet Crude

The light sweet crude markets initially fell during the course of the week, testing the $99 level. We did find enough support at that area to turn things back around and go all the way up to the $104 handle. Ultimately, the market formed a very positive candle, and as a result of we can get above the $104 level, we would be buyers as the market should then head to the $107.50 handle.

The market has been an uptrend for some time now, so we have no interest whatsoever in selling, and believe that pullbacks will continue to offer value in this market and that people will continue to enter every time we fall. In fact, we believe that there is significant support all the way to the $90 level, and as a fact the market will be sold by us until yet well below the $90 handle.

 

Brent

The Brent market as you can see went back and forth during the course of the week, testing the $105.50 level for support, and the $180.50 level for resistance. By going back and forth like that and ultimately finishing almost unchanged, we feel that this market should continue to meander around this general area right now, and as a result we think that a move above the top of the range for the week is what’s needed in order to start buying.

If we get above there, the market should head to the $115 level, and possibly even higher as the market ultimately should continue the uptrend that we’ve seen. All things being equal, there is a bit of a trend line that we are walking along right now, and he did in fact hold. As the market is so oversold at this point in time, a bounce certainly should be coming and we will take advantage of that if we get the right momentum. As far selling is concerned, we have no interest in to we break down well below current areas, such as the $103 area.