Crude oil markets fall during Thursday session to find support

WTI Crude Oil

The WTI Crude Oil market fell initially during the day on Thursday, reaching down to the $70.50 level. We found enough support thereto turnaround of form a hammer on the hourly chart, and that is the beginning of significant support extending down to the $70 level. Ultimately, if we bounce from here I believe it’s only a matter of time before we bounce towards the upside, perhaps towards the $72 level, and then eventually the $73 level. I believe that the $70 level underneath is massive support, and it seems unlikely that we will break down below there anytime soon.

Brent

Brent markets pulled back initially during the day, reaching towards the $70.50 level before bouncing a bit. I think that the $80 level above is going to be resistance, and if we can break above that level and perhaps even more importantly the $80.50 level, the market should continue to go much higher. I think that the overall proclivity of this market is to go to the upside, but we obviously have significant barriers to get beyond. Once we do, the market should become more of a “buy-and-hold” situation. If we do break down from here, there is a gap near the $77 level that should offer quite a bit of support and a bit of a “floor” in the market. I don’t think we break down below there unless something drastic happens. With fear around the world that the Iranians will be able to supply oil, that should continue to put bullish pressure into the markets.

Crude Oil Forecast Video 25.05.18