Crude Oil Price Forecast March 13, 2018, Technical Analysis

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Updated: Mar 13, 2018, 06:15 GMT+00:00

Crude oil markets rolled over during the trading session on Monday, losing well over 1.5% during the day. The markets now look very susceptible to selling pressure, and I think that every time we rally, it’s likely that sellers will remain very active.

WTI Crude Oil

The WTI Crude Oil market fell significantly during the trading session on Monday, losing over 1.5%. Ultimately, it looks as if the oil markets will continue to be unwound, as we are starting to see a lot of negativity flow into this market place. If the US dollar continues to rally significantly, that should put downward pressure on the crude oil markets as well. The oversupply of crude oil continues to be a major issue, and I believe that it will continue to weigh upon the market. Hedge fund traders have been selling over the last several sessions, as it is starting to show up in the pricing.

Crude Oil Video 13.03.18

Brent

Brent markets also fell rather hard, breaking below the $65 level with no issues, and then the $64.50 level after that. Longer-term, I suspect that the $64 level will get targeted by the sellers, as crude oil has been sold off hand over fist. The Brent markets of course are sensitive to the US dollar as well, so it’s worth watching the currency because if it starts to rally, that will put downward pressure on Brent itself. Ultimately, it looks as if the market will find support underneath, but I am bearish at this market longer term. I look at short-term rallies as selling opportunities as we show signs of exhaustion, and then eventually continue to go much lower. I think the market will continue to be noisy, but decidedly bearish and I have no interest in buying.

Brent daily chart, March 13, 2018

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.