Crude oil markets have a negative week

WTI Crude Oil

The WTI Crude Oil market pulled back during most of the week but continues to find support at the uptrend line that has been a major part of this market for several months. It looks as if we will continue to find value hunters jump into this market on dips, and short-term traders certainly are bullish. Longer-term traders may have a little bit more to worry about though, and that we would need to see a fresh, new high to clear what could be a “double top.” That of course is a very negative sign, but I think that if we break through it, it suddenly becomes very bullish. It’s not until we break down through the uptrend line that I could be a seller.

Brent

The Brent markets broke down significantly during the week, reaching towards the uptrend line, but turned around to form a hammer on the weekly chart. The hammer of course is a bullish sign, and we had a hammer from the previous week as well. If we can break above that hammer, then I think the market is free to go much higher. The alternate scenario of course is that we break down through the uptrend line, and then reach down to the $65 level. That is a significant support level, so I would expect value hunters come back in that area. Although it’s been very noisy, I think at worst we are probably looking at consolidation on the break down.

WTI Video 09.04.18