Crude Oil Price Forecast August 28, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially tried to rally but then fell towards the $47.50 level. This is an area where we see plenty of support, and of course is a bit of a magnet for price in general. I believe that volatility continues, but I am waiting for rallies to start shorting at the first signs of exhaustion. Ultimately, this market continues to deal with an oversupply issue, and as OPEC cuts, Americans are picking up the drilling. The hurricane heading towards Texas could have a bit of a short-term influence on price, but longer-term fundamentals will continue to drive this market to the downside. Ultimately, I think that the market will probably go looking towards the $46.50 level below. I believe that the $50 level above continues to be massively resistive, and I would be surprised to break above there without some type of catastrophic issue in the Gulf of Mexico, which of course is possible, but even then, it would be a short-term move at best from what I see.

Crude Oil Inventories Video 28.8.17

Brent

The Brent market fell a bit during the day on Friday, as the $52.50 level continues to be resistance. It looks as if the market is continuing to make slightly higher highs, and that of course is a very bullish sign. To break above the top of the $52.50 level should send this market higher, but we need to clear the yellow rectangle on the chart, essentially a resistance barrier extending towards the $53 handle. I think pullbacks continue to be buying opportunities unless we breakdown below the $51.50 level. Ultimately, I am bearish of this market but I believe that the rallies could be bought for the short term moves it will almost certainly calm.