Crude Oil Price Forecast July 5, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market went sideways most of the day on Tuesday as the Americans were away for Independence Day. That being the case, the market looks as if it is trying to rally later in the day, but quite frankly I am not overly impressed as I believe that this moved to the upside has been a bit of a relief rally more than anything else. The $47.50 level above could be resistive, and I am waiting to see and exhaustive candle on the daily timeframe to start selling again. I do not like the WTI Crude Oil market, as we are oversupplied. Given enough time, the market should then go looking for the $45 level and then even lower. I have no interest in buying longer-term, and therefore I am waiting for signs of exhaustion to make my move.

Oil Forecast Video 05.7.17

Brent

Brent markets went sideways initially during the session, but eventually found enough momentum to reach towards the $50 level. The $50 level should be psychologically resistive, as it has been both support and resistance over the longer term. I believe that some type of exhaustive candle will present itself that we can start selling, as the oversupply issues will continue and of course eventually the market will start focusing on that again. A break above the $50 level should send this market looking to go even higher, but quite frankly, the higher this market goes, the more interested I am in shorting. I don’t have an exhaustive candle though, so I am sitting on the sidelines and waiting for reasons to sell. We are in a longer-term downtrend and down trending channel, and that of course is reason enough to think that the bearish pressure should continue given enough time.