Crude Oil Price Forecast August 25, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially went sideways during the session on Thursday, but fell significantly and even sliced through the $47.50 level. I think that the $47 level underneath is going to offer a little bit of support, but more than likely we will try to go down to the $46.50 level. Any rally from here should be a selling opportunity, as I think there is a lot of trouble ahead. However, the one caveat is of course the tropical storm in the Gulf of Mexico which is starting to turn into a hurricane, and that could cause a little bit of disruption. However, I would look at any pop in this commodity as an opportunity to start selling again. Ultimately, I believe that we will probably reach below to the $45 level, and that the choppiness will continue to be a major factor, especially considering that we are in one of the least liquid times of the year. With that being the case, caution is advised.

Crude Oil Forecast Video 25.8.17

Brent

The Brent market went sideways initially on Thursday, but fell apart and broke down towards the $51.50 level. This is an area that should be supportive though, so the next few candles on the hourly chart should be interesting. If we can break down below the $51.25 level, I think the market then goes to the $50 level underneath. Alternately, we could bounce from here but I still expect the $52.50 level to offer a bit of a ceiling currently. Keep in mind that there is a hurricane heading towards Texas, and that could disrupt the supply chain and offer a bit of a bid, something that’s been difficult to hang onto over the last several months. However, that would be a short-term phenomenon.