Crude Oil Price Forecast – crude oil plummets on Wednesday

Crude oil markets fell rather hard during the day on Wednesday, reaching down towards a significant support though, after the crude oil inventory number came out less bullish than anticipated. However, most of the action was ahead of the announcement, so I believe this may have been a technical move more than anything else.
Christopher Lewis
Crude Oil daily chart, August 09, 2018

WTI Crude Oil

The WTI Crude Oil market fell rather significantly during the trading session on Wednesday, reaching down towards the vital $67 level before finding buyers again. This was after the announcement of a drawdown of inventory, but less of a drawdown than originally thought in America. That being the case, I’m watching the $67 level very closely as it is important support that we have seen more than once. I think there are more than enough global tensions to keep somewhat of a bid in the crude oil market, so be advised that the $67 level will be very difficult to break down below. If we bounce from here, that would sustain the range bound action that we have seen between this level and the $70 level. Otherwise, we probably drop down to $66 looking for the longer-term trend line.

Brent

Brent did a very similar thing during the day, reaching down towards the $72.50 level. It is starting to show signs of life again near this level, and we may see a turnaround. However, I would be very small with my trading position if I did decide to go that route. I see support underneath at the $72 level, so it will be very interesting to see if this area holds. If it does, then we simply continue to consolidate as we have been doing for some time. Again, I think there’s enough geopolitical concerns out there to keep this market afloat, a lease that these low levels.

Crude Oil Price Forecast Video 09.08.18

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