Crude Oil Forecast July 14, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market shot higher during the day on Thursday, using the $45 level as support. This was predicated mainly upon reports that Saudi Arabia is going to cut exports of crude oil to the United States, but quite frankly this is going to be a short-term effect on the market as the United States becomes much more energy independent. Ultimately, part of this could be short covering as well, and I think that the market may have a proclivity to go higher, but just in the short term. The alternate scenario is if we break down below the $45.80 level, which would have the market returning to the $45 level underneath, meaning that we are going to be in consolidation.

Crude Oil Forecast Video 14.7.17

Brent

Brent markets rallied as well, slicing through the $48 level. The $48.50 level above should continue to be massively resistive, and I believe that the market will continue to be volatile. If we do rally, the next major resistance barrier of course is the $49 level. A break above there should send this market looking towards the $50 level which I think is the absolute “ceiling” in the market. Because of this, I’m waiting to see and exhaustive candle that I can start shorting, or an impulsive candle to the downside that gives me the same opportunity. I don’t have any interest in buying this market because the longer-term fundamentals or so bearish for oil. I think it’s only a matter of time before sellers come back, so being patient will be the best way to approach this market, as longer-term forces continue to press lower, but obviously picking your spots to get involved is probably the best way to approach the oil markets, especially in the quiet summer months.