Crude oil markets fall during the week only to find support

WTI Crude Oil

The WTI Crude Oil market initially fell during the week, drifting down towards the pseudo-uptrend line and bouncing to form a bit of a hammer. If we can break above the top of the hammer, the market should continue to go higher, perhaps trying to reach towards the $70 level. While we have sold off rather drastically as of late, it looks as if we are going to at the very least bounce, perhaps try to go even higher. The recent shakeout has been rather drastic, but perhaps a bit overdone.

Brent

Brent markets also fell initially during the week but turned around form a hammer. It is preceded by a shooting star, so I think what we are going to see over here is more of a sideways chop than anything else. The $75 level underneath should offer support, just as the bottom of the hammer from this past week will be. It’s likely that we could rally from here, perhaps reaching towards the $80 level above. I think if we break down below the hammer, then the market will go looking towards the uptrend line underneath, perhaps dropping down to the $72 region.

If we do break out to the upside, I think the market could go looking towards the $80 level, perhaps even breaking above that level to go even higher. Ultimately, this is a market that will be very noisy, so overall I believe that short-term trading will probably be easier.

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