Crude Oil Price Forecast January 31, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market broke down below the uptrend line on the hourly chart to show signs of negativity on Tuesday, reaching down towards the $63 level. The $63 level should be massively supportive, and I think that the markets will continue to find buyers given enough time. This is a market that I think eventually could break above the $65 level and extend to the upside, but it’s likely that we will continue to be moved by the US dollar, and of course demand. Alternately, if we break down below the $63 level, the market should then go down to the $60 level. This is a market that has been bullish for quite some while, and I think that this pullback is healthy.

Oil Forecast Video 31.01.18

Brent

Brent markets have broken down during the trading session on Tuesday, reaching down towards the $60.50 level as I record this. The market has plenty of support down to the $67.50 level, and I think it should offer a significant amount of support. I would anticipate a bounce in that general vicinity, and perhaps a return to the $70 level. However, if we break down below the $67.50 level, we probably will find ourselves going towards the $65 level rather quickly. Pay attention to the US dollar, as the greenback falling helps the crude oil market go higher. Alternately, if the US dollar rallies, that can put a bit of downward pressure on Brent as it is priced in that currency.