WTI Crude Oil
The WTI Crude Oil market has gone sideways during the trading session on Thursday, as we continue to see the $70 level offer a significant amount of resistance. You can see that there was a Lowered several days ago, and we are at the very top of it. I think there is a significant amount of supply just above, so short-term sellers will probably continue to come into the market and push to the downside. Below, I see the $67.50 level as being supportive, and perhaps the initial target for sellers. Nonetheless, oil markets are very volatile at the moment, and of course will have a certain amount of influence pressed upon them by the strength or weakness of the US dollar.
Brent
Brent markets initially tried to rally during the trading session on Thursday as well, testing the $74.50 level. We have pulled back from there, breaking towards the $74 level. You can see that I have the previous uptrend line on the chart still, and it continues to offer resistance. Beyond that, I think the $75 level is also extraordinarily resistive, so I think it’s only a matter time before the sellers get their way. If we close on the daily chart above the $75.50 level, then I would be convinced to start buying. Otherwise, I believe that selling rallies continues to be the best way to go forward as the market has had a nice bounce from the lows, but as you can see hasn’t exactly been impulsive. Beyond that, we need to worry about demand currently.