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Crude Oil Forecast June 16, 2017, Technical Analysis

By:
Christopher Lewis
Updated: Jun 16, 2017, 04:21 UTC

WTI Crude Oil The WTI Crude Oil market went sideways during the Thursday trading hours, as we continue to trade sub $45. Because of this, I believe that

Crude Oil daily chart, June 16, 2017

WTI Crude Oil

The WTI Crude Oil market went sideways during the Thursday trading hours, as we continue to trade sub $45. Because of this, I believe that we are eventually going to see selling pressure and of the market, and that short-term rallies will continue to offer short-term selling opportunities. A breakdown below the lows should send this market down to the $43 level after that. The $45 level above is massive resistance, and a break above there could change the attitude of the market for the short term. Ultimately, this is a market that I think will continue to see quite a bit of bearish pressure due to the fact that demand is so low and of course we have such a massive supply glut when it comes to petroleum around the world.

Crude Oil Forecast Video 16.6.17

Brent

Brent markets course are in any different, hovering just below the $47 level during the day on Thursday. I believe that we are looking to sell off, but if we rallied from here, the next major resistance barrier will be the $48 level, an area that I would be very comfortable selling from. With this in mind, I am very bearish of this market, and have no interest in buying at all. I have a longer-term target of $45, which should attract a lot of attention due to the large, round, psychologically significant number aspect of it. A break below there is very bearish, and could send this to the $43 level rather rapidly.

The oversupply in the crude oil market continues the way upon pricing, and I don’t think that’s going to change anytime soon as we are quite frankly running out of areas to put oil in to keep for storage. If my biased changes I will let you know, but quite frankly that’s very unlikely.

Brent daily chart, June 16, 2017
Brent daily chart, June 16, 2017

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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