Crude Oil forecast September 11, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially rally during the week, breaking above the top of the hammer from the previous week. However, as it appears that the hurricanes are not going to disrupt the petroleum infrastructure in the Gulf of Mexico too much, sellers came back in on Friday to turn the market around. I think now we will continue to see a lot of choppiness hovering around the $47.50 level, and it’s going to be difficult to hang onto a trade for any real length of time. The market continues to be dominated by short-term scalpers, and I think that will continue to be the case. Ultimately, I believe that the market will need to decide, but I won’t be convinced to start buying from a longer-term perspective until we clear the $50 level, or selling from a long-term perspective until we break down below the $45 handle. Either way, this is a short-term trader’s situation.

Crude Oil Inventories Video 11.9.17

Brent

On the other hand, Brent markets broke above the top of several hammers from the previous weeks, slamming into the $55 level. This is an area where I would expect to see a lot of resistance, so I think we may get a bit of a pullback. However, longer-term traders probably don’t have much of a trade here, because quite frankly there is a lot of room to move. With this, I will continue to monitor this market, but until we get some type of clarity, it’s probably best to stick to short-term charts. Ultimately, we will decide, but right now it looks as if there is a lot of confusion when it comes to the petroleum markets. Because of this, it’s hard to make any longer-term trade, and most certainly dangerous.