WTI Crude Oil
The WTI Crude Oil markets gapped lower to kick off the session on Tuesday, turned around to rally, and then fell hard to break down below the $62.50 level. At this point, I don’t have any interest until we break above the $64 level as far as buying is concerned. If we can break above the top of the shooting star from the Monday session that would be a very bullish sign. At this point, I think we are decidedly bearish though, so quite frankly I am very hesitant to start buying it at this point.
Oil Forecast Video 07.11.18
Brent
Brent markets went back and forth during the day but ultimately show signs of weakness again. In fact, we had formed a shooting star of the last three candles, so looks like we are going to grind lower. At this point, I feel that the Brent market is probably going to try to reach down towards the $70 handle underneath which of course is a large, round, psychologically significant figure. The $75 level above should be significant resistance, so it’s not until we break above the top of the shooting star from the Monday session that I think the buyers will even remotely be encouraged. This is a market that is extraordinarily bearish, but it’s not hard to imagine that it’s also oversold. The easy money to the downside has certainly already been made. If we were to break down below the $70 level, we could break down rather drastically.