Crude Oil Price Forecast August 29, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market broke down significantly on Monday as demand for crude oil will be lower from refineries affected by the Harvey storm. Because of this, I think it’s only a matter of time before sellers get back into the market on rallies, and I’m looking for rally that show signs of exhaustion that I can sell. I think that the longer-term outlook for crude oil is negative anyway, so given enough time we should see this market looking towards the $45 level. Ultimately, I have no interest in buying, and when we rally I just sit on the sidelines and wait for an opportunity to short yet again. The $50 level above could be targeted eventually, but it’s not until the refineries open that we will see that. I think at the $50 level it should be an excellent selling opportunity.

Crude Oil Video 29.8.17

Brent

Brent markets fell as well, after initially gapping higher. The $51.50 level has offered a bit of support, but I think given enough time the sellers will return on signs of exhaustion. The $52.50 level above should be massively resistive, and as a result I think that looking for exhaustion should be a nice opportunity to get short of this market yet again. If we break down below the $51.25 level, the market is probably free to go down to the $50 level longer term. I expect volatility, there will be a lot of headlines coming out of the Gulf of Mexico, but given enough time I think the longer-term fundamentals will come into play. With this, I remain negative of this market, but recognize that maybe short-term buying opportunities for those who are quick enough to pay attention to the charts may present themselves.