Crude Oil Forecast September 5, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially fell on Monday, but found enough support near the $47.25 level. We broke towards the $47.50 level, and then started to pull back again. With refineries opening again quicker than anticipated, it will be interesting to see how the markets react. I believe that this area of resistance will be important, so if we break down below the $47 level, I think the sellers take over again. Alternately, a break above the $47.75 level is a buy signal. In the meantime, I think you can expect a lot of volatility as headlines come out of Texas. It’s difficult to put a lot of money into the market right now, because not only do we have the issues in Texas, but we also have relatively thin trading conditions as traders are away at holiday.

Crude Oil Video 05.9.17

Brent

The Brent markets gapped lower, breaking well below to the $50 level. We bounce from there, fill the gap, and now look like we are ready to start rolling over again. That’s a very negative sign going forward, and if we can break down below the $52 level, the market should then go down to the $50.50 handle. Ultimately, it’s likely that we go down to the $50 level but keep in mind that the volatility continues to be an issue. I still am bearish of oil in general, but we have another hurricane heading towards United States, and that could cause issues with refineries. Ultimately, this is a market that should continue to see volatile action, but I still believe that there is much more conviction on the downside than the up, as there are plenty of reasons to think that the market may drop from here. Buying is still a tenuous proposition.