Crude Oil Price Forecast June 22, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market broke down significantly during the day on Wednesday, after initially trying to rally. The market sliced through the $43 level, reaching all the way down to the $42 level. I think that every time we rally, there should be a nice selling opportunity, and with this being the case it’s likely that the sellers will return yet again. I think that the market should then go down to the $40 handle as the oil market continues to struggle in general. There is a massive oversupply in the marketplace, so it makes quite a bit of sense that the sellers will continue to get involved. I have no interest in trying to buy this market, because quite frankly we have just seen a massive breakdown through support.

Crude Oil Price Forecast Video 22.6.17

Brent

Brent markets did the same thing, breaking below the $45 level, which of course is a significant psychological support level. A breakdown below the $45 level sends this market looking towards the $44 level. I think that the ceiling is now the $46 level, as supply and the marketplace is overwhelming demand. I don’t see any chance of this market turn around anytime soon, as we continue to break down every several sessions. Ultimately, the market should then go down to the $40 handle underneath.

Every rally offers an opportunity, and if the US dollar continues to strengthen, that should be negative for this market as well. Even though we had a stronger than anticipated drop in inventories in the United States, oil still cannot hang on to the gains and that shows just how negative this market truly is. Ultimately, this is a “sell only” market in the near term, and possibly even longer than that.