Crude Oil Price Forecast February 13, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market has rallied significantly during the day on Monday but is starting to run into trouble near the $61 level, an area that is congruent with an uptrend line that has been important. The fact that we broke down below that uptrend line late last week was a very negative sign, and it now looks as if we are trying to roll over from that level. If we do, I think we will continue the overall downtrend. Keep in mind that oversupply of crude oil is going to continue to be an issue as Americans are becoming very aggressive.

Brent

Brent markets rallied as well, but struggled near the $64.50 level, and obviously has a certain amount of psychological resistance at the $65 level. At this point, I think that we are starting to roll over a bit so it’s likely that the downward pressure should continue. Now that the United States has become the world’s largest producer of oil, and the oversupply in America continues, I believe that oil markets are in trouble longer-term, and hedge funds are starting to run away from it again. I have a target of $60, and I realize that rally should be selling opportunities unless we can crack the $66 level above, something that doesn’t look very likely in the short term. If we can break down below the $60 level, the market should go much lower, perhaps reaching down to the $50 level by the summertime.

Crude Oil Video 13.02.18