Crude Oil forecast for the week of August 28, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market fell during the week, reaching below the $47.50 level. We have an uptrend line that has been supporting the market though, but we also have a downtrend line that keeps it lower. Ultimately, I believe that the $50 level above being broken would be a very bullish sign, and I think that could be something that is possible due to the hurricane in Texas. However, I think it’s much more likely to be a market that is sold off given enough time. Oil markets are very choppy, so it’s difficult to trade from the longer-term perspective as we have seen so much in the way of back and forth effort as OPEC has been cutting production, while the Americans continue to increase production.

WTI Video 28.8.17

Brent

Brent markets fell initially during the week but turned around to form a bit of a hammer. The hammer is preceded by another hammer, a shooting star, and then another hammer. The $52.50 level continues to be a bit of a magnet for the price. We could get a short-term rally, but I think the $55 level above will be massively resistive. A breakdown below the bottom of the candle for the week should send this market looking for the $50 level, and a move below there should send this market down to the $47.50 level. Ultimately, I think that the market probably makes a move towards the $45 level, but it’s going to be something happens over the longer-term, not anytime soon. This is a market that continues to be very volatile, and it’s likely that the situation isn’t going to change anytime soon as OPEC has lost control of the situation. Even though we may get a short-term rally, I am still longer-term bearish.