Crude oil markets continue to look soft

WTI Crude Oil

The WTI Crude Oil market has fallen well over 1% during the trading session on Monday, but keep in mind that the Americans were away so liquidity would have been a bit of an issue. Ultimately, the market could bounce from this area though, because we are testing the major uptrend line underneath. The $66 level is massive support, and if we break down below there it’s likely that we unwind. It has been very difficult to be a buyer over the last several sessions, as both Russia and Saudi Arabia are suggesting that perhaps production may pick up as oil has gotten rather expensive. At this point, I think if the market breaks above the $67 level, then the uptrend line will have held.

Brent

Brent markets have bounced around the $75 level, an area that is obviously going to be important from a psychological standpoint, as well as structural as it has previously been resistance. I believe that if we can bounce from here, then the market could go looking towards the $77.50 level above. If we break down below the low of the day, then we could drift down to the $73 level underneath which was massive support in the past. Ultimately, this is a market that I think is going to be very noisy, but the strengthening US dollar has not helped after the recent volatility.

Crude Oil Video 29.05.18