Crude Oil forecast for the week of September 4, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market fell during most of the week, but found enough support just above the $45 level to turn around and form a hammer. The hammer is a very bullish sign, and as we have seen several before that, I think that the buyers are finally starting to take a bit of control. With this, I think that the market will continue to find buyers as we reach towards the $50 level. A break above the $50 level is bullish for a longer-term move. Until then, I suspect that is can be difficult to trade this market with any real certainty, as the volatility should continue. A breakdown below the $45 level would be very negative, and have this market looking towards the $42.50 handle underneath.

WTI Video 04.9.17

Brent

Brent markets fell yet again, but just as we have seen over the last several weeks, found plenty of support just above the $50 level. By forming several hammers in a row, this is a sign that the market is ready to go higher. Ultimately, the $55 level above is the target. If we can break above there, the market probably goes higher. A lot of the movement that we have seen is due to hurricane Harvey, so it’s hard to tell with the longer-term effective that will be, but currently it looks as if the short-term buyers are getting involved. A breakdown below the $50 level would be negative. They move below there has the market looking for the $47.50 level below which of course should be massively supportive. A breakdown below there would send this market looking for the $45 level. However, looks as if the buyers are starting to flex their muscles, so I believe the buyers are going to lead the way.