Crude Oil Price Forecast February 16, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market pulled back significantly at the beginning of the trading session on Thursday but found enough support near the psychologically important $60 level to bounce. However, the previous uptrend line it should offer resistance, does not until we break above the $62 level that I’m convinced that the rally can continue. I believe that the markets will continue to struggle, but a falling US dollar might be helping, at least temporarily. Demand is probably not going to be to keep up with oversupply though, so I think any rally probably has a limited lifeline. I believe that selling signs of exhaustion is the best way to trade.

Crude Oil Forecast Video  16.02.18

Brent

Brent markets also pulled back during the day on Thursday, reaching down towards the $63.25 level. We found enough strength to go higher and reach towards the $64.50 level again, but the $65 level above there should be very resistive, as it is a large, round, psychologically significant number that has seen action previously. Beyond that, the uptrend line from the recent uptrend coincides with $66, so I think there is more than likely going to be an opportunity to short this market rather soon. Ultimately, this is a market that should roll over, and I think that any rally is short-lived at best, and probably more to do with currencies than anything else. I believe that we will go looking towards the $62 level underneath.