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Crude Oil Forecast September 16, 2016, Technical Analysis
Published: Sep 16, 2016, 05:06 GMT+00:00
WTI Crude Oil The WTI Crude Oil market went back and forth during the course of the session on Thursday, as we continue to bang around the $43 level. This
WTI Crude Oil
The WTI Crude Oil market went back and forth during the course of the session on Thursday, as we continue to bang around the $43 level. This is an area that offered enough support to turn things back around after falling, but at this point we are essentially going sideways. If we can break down below there, I feel the market then could reach towards the $41 level, and then possibly the $40 level as well. Ultimately, any rally at this point in time will probably have quite a bit of resistance near the $47 level, so I think that would be a short-term trade as well. Ultimately, this is a market that I think is starting to roll over again, and as a result I feel that any trades that are can have any length of time to them are probably going to have to be negative at this point.
Brent
Brent markets rallied a little bit during the course of the day on Thursday, using the $46 level as support. However, even if we rally from here I think that the market would not be able to reach towards the $50 level. That would be a short-term trade at best though, because I think we are starting to roll over here as well. A break down below the bottom of the candle for the session of Thursday would send this market then reaching towards the $44 level, and then reach down to the $42 level after that. I think that the market is going to continue to struggle in general though, as the US dollar continues to show bits of stubbornness when it comes to strength, and of course demand is a real question as we have seen that the IEA has suggested that the oversupply is going to run well into next year, and that of course would be very negative for the markets in general as the demand simply won’t be enough to bring down the supply issues that we have around the world right now.
About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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