Crude Oil Price Forecast December 8, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market went back and forth during the trading session initially on Thursday, but then broke above the $56.50 level to show signs of volatility. The $57 level above will probably be resistive, and I think it extends to the $57.50 level, and with today’s jobs number coming out I think we will see a lot of volatility in the US dollar, and I think that will have the opposite effect in this market as per usual. Some type of exhaustive candle in that area is a nice opportunity to short this market, as the recent breakdown has been relatively important. If we break above the $58 level, then I think we go higher again.

Crude Oil Forecast Video 08.12.17

Brent

Brent markets initially gapped higher at the open on Thursday, but ever so slightly. We pulled back from there to form a hammer on the hourly chart, and then reached towards the $62.20 level above. That’s an area that was previous support, and I think somewhere in this area we will find significant resistance. If the US dollar strengthens, Brent markets will roll over. Beyond that, some type of exhaustive candle is a nice opportunity to sell as well, reaching down towards the $60 handle. It’s not until we break above the $63 level that I am comfortable buying this market, perhaps reaching towards the $64 level after that. The choppiness in this market should continue as we worry about production cuts coming out of OPEC, but at the same time recognize that high pricing brings American drillers into the market.