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Crude Oil Forecast May 1, 2017, Technical Analysis

By:
Christopher Lewis
Updated: Apr 29, 2017, 04:41 UTC

WTI Crude Oil The WTI Crude Oil market rallied initially during the day on Friday but found the $50 level to be too resistive. We turned around to form a

Crude Oil daily chart, May 01, 2017

WTI Crude Oil

The WTI Crude Oil market rallied initially during the day on Friday but found the $50 level to be too resistive. We turned around to form a shooting star, and with the hammer from the previous session, and the weekly candle looking a lot like hammer, I think we’re going to see quite a bit of choppiness going forward. I do think that we need to make a serious decision soon though, and a breakdown below the bottom of the hammer from the Thursday session I think as this market looking for the uptrend line underneath, and perhaps even breaking down below there. Alternately, if we can break above the shooting star from the Wednesday session, that would be a very bullish sign and send this market looking for the $53 level. Either way, expect very choppy trading conditions, and unless you’re a very short-term trader, this is a market that you need to let make its decision first before putting money to work.

Crude Oil Inventories Video 01.5.17

Brent

Brent markets gapped higher at the open on Friday, reaching even higher levels than the Wednesday shooting star. However, the market turned around and showed signs of weakness. However, I do think that the hammer that extends down towards the $50 level will continue to be very supportive. If we break above the top of the shooting star from the Friday session, I think that the market goes to the $53 level and then possibly even the $55 level. Alternately, if we break down below the $50 handle, I believe that is a very bearish sign and send this market to much lower levels, possibly $47 and then the $45 level under that. Ultimately, this is a market that will see choppy and volatile, but I believe that the market will have to make some type of serious decision. Ultimately, I think that it’s very likely that we breakdown but I’m not willing to put money to work until we get some type of clarity in the market. In the meantime, expect a lot of back and forth range bound trading.

Brent daily chart, May 01, 2017
Brent daily chart, May 01, 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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