Crude Oil Price Forecast February 7, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market fell significantly during the trading session on Tuesday, reaching down towards the $63 level. That’s an area that has been supportive in the past, so it’s not a surprise at all that we have seen strength into the market, reaching towards the $65 level. I think at this point, we will struggle to get above $65 initially, but eventually we could go as high as $66 level. I think the market will continue to be very volatile, and I think you should keep your position size a bit small, as the volatility will probably only pick up from here.

Brent

Brent markets gapped lower at the open on Tuesday, slicing through the $60 level like it wasn’t even there. We have broken down towards the $66.50 level underneath which has been supportive in the past. I think that if we rally from here, we could run towards the $60 level above, which should be resistive. It was previous support, but the gap that formed at the beginning of the trading session should be significant resistance. If we break above there, the market should then go towards the $70 level, which has been resistance in the past. I think oil markets will continue to be very noisy, but the recent selloff may be a bit overdone. If risk on attitude comes back into the marketplace overall, I think oil will follow suit. Pay attention to stock markets to see what happens next.

Oil Forecast Video 07.02.18