Crude Oil Price Forecast July 20, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially went sideways during the session on Wednesday, but as the Crude Oil Inventories number came out, it showed that demand had picked up for crude oil, so obviously drunk price higher. It looks as if the market is struggling near the $47 level though, so it’ll be very interesting to see how this turns out. At the first signs of exhaustion, I would be a seller as we are getting a bit stretch, but if we can break above the $47 level, it’s likely that the market will go looking for the $48 level. Either way, expect volatility but it looks as if the buyers are starting to flexor muscles a bit.

Crude Oil Price Forecast Video 20.7.17

Brent

Brent markets of course did the same thing, slicing towards the $49.50 level. I think there is a massive amount of resistance near the $50 handle, and a break above there would be a major sign of strength. However, the market should continue to go much higher. I think that the $50 level is going to be very difficult to overcome, as it is a large, round, psychologically significant number, and of course previous support and resistance on the longer-term charts. Alternately, if we break down below the $49 level, the market should continue to go much lower, perhaps reaching towards the $48 level. I expect a lot of volatility, but it looks as if the markets are trying to rebalance themselves a bit, and that perhaps supply is starting to dwindle down a bit. However, longer-term it can only go for so long, as there is a plethora of American wells that are almost completed. In other words, if oil continues to rise in value, those wells will be utilized.