WTI Crude Oil
The WTI Crude Oil market dropped a bit during the trading session on Wednesday, reaching down towards the support level that extends down to $67. Overall, I look at the uptrend line underneath as offering massive support as well. It is because of this that I think we are likely to see a bit of a bounce, simply a return to the consolidation. However, if we break down below the uptrend line, then I think the oil markets could break down rather significantly.
Brent
Brent markets also fell, but we have a little bit more support underneath in this market than we do in the WTI market, probably because we have seen so much in the way of selling previously. The $70 level underneath seems to be a bit of a “floor” based upon the longer-term charts, but to be honest with you it’s likely that the $72 level will probably offer a bit of support as well. Overall, I do think that this is a negative market, but there are a lot of factors ahead that’s going to cause major volatility. I think that the US dollar needs to be paid attention to as well, but right now I would not be surprised at all to see this market grind its way down to the $70 level, perhaps with a couple of balances between now and then.