Crude Oil Price Forecast August 1, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially touched the $50 level during the session on Monday, but rolled over from there. This is an area that I think is vinyl on the longer-term charts, so if we were to break above there, it would be a very big deal for me personally. I think that this pullback from the $50 level shows that the market is not quite ready to break out, and therefore exhaustive short-term rallies could be selling opportunities. However, I recognize that if we managed to close above the $50 level on the daily timeframe, that would be a very bullish sign and more than likely send this market looking towards the $52.50 level above. I think the one thing you can count on is going to be volatility, so therefore I would keep my position size somewhat small.

Crude Oil Video 01.8.17

Brent

Brent markets gapped lower at the open on Monday, never quite showing the resiliency that the WTI grade of crude oil did. Because of this, the market then trying to fill the gap, and then rolled over again. We are currently trading just below the $52 level, and I think there is probably some support below, but given enough time I suspect that if we cannot make a fresh, new high on the daily chart, the market will begin to roll over as oil has had a bit of a free ride for about a week now. Because of this, I believe that there is a lot of the skepticism in this market, but with good reason. There is still a major problem with oversupply, and that has not changed although the supply situation is getting better. As we talk about more cuts coming out of OPEC, there are plenty of finished oilfields in the United States just waiting to come back online. I believe that continues to weigh upon any rally.