Crude Oil Price Forecast August 24, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market went sideways initially during the session on Wednesday, using the $47.50 level as support. Ultimately, there is a lot of noise in this market, and this being the case I think that the market may go looking towards the $49 level above which should be a bit of psychological resistance. Even though we’ve seen this bullish move, I believe at the end of the day we still will struggle to break above the $50 level overhead. Because of this, I think that short-term buyers may get with a one, but longer-term sellers will probably get the opportunity to start selling again on resistive candles. If we can break down below the $47.50 level, I think we go down to the $46.50 level next.

Crude Oil Price Forecast Video 24.8.17

Brent

Brent markets exploded to the upside during the day as well, as the crude oil inventory number in the United States was pretty much as expected. The $52.50 level above has been resistive, and I have a yellow rectangle on the chart that suggests where we may see a lot of resistance. If we can clear the $53 handle, it’s likely that we will continue to go to the upside. However, if we get some type of exhaustive candle, I think that we could turn around and fall back towards the $51.50 level. Ultimately, this is a market that will continue to be volatile as there are so many headwinds to clarity when it comes down to the value of the petroleum markets. The volatility should continue, so being nimble is probably one of the most important things that oil traders can do. Keep your position size small, we should continue to be massively choppy during one of the thinnest times of year.