WTI Crude Oil
The WTI Crude Oil market has fallen a bit during the trading session on Wednesday, reaching down towards the $71 level, an area that has been supportive in the past. However, if we break down below that level, it’s likely that we could see support at the $70 level. Ultimately, I think that the $70 level should put a bit of a “floor” in the market, but if we were to break down below there I think there are plenty of reasons for this market to rally despite the surprise number that came out during the session.
Brent
Brent markets also fell during the day, reaching towards the $78 level. There is the $80 level above that has offered a significant amount of resistance, as it is a large come around, psychologically significant number. It has offered resistance twice, more particularly at the $80.50 level, so the question now is whether that is a bit of a double top. If we rally from here and test set level only to fail again, then I could foresee a short-term selling opportunity. Ultimately, if we break down below the $78 level, we could reach towards the $77 level next, and then the $75 level after that. Ultimately, if we can break out to a fresh, new high, then oil will continue to go much higher, perhaps reaching towards the $85 level after that. This is a market that continues to be thrown around but in an overall bullish attitude.