Crude Oil Price Forecast March 14, 2018, Technical Analysis

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Updated: Mar 14, 2018, 05:37 UTC

Crude oil markets were very noisy during trading on Tuesday, as it was announced that Secretary Tillerson was leaving the Trump administration, perhaps putting the Iran deal in jeopardy. Because of this, oil markets of course were all over the place, but it now looks as if stability is coming back.

WTI Crude Oil

The WTI Crude Oil market fell apart during trading on Tuesday, reaching down towards the $60.25 handle. By doing so, we tested a significant amount of support, and as I record this looks as if the buyers are trying to make some type of stand. With that in mind, I think more consolidation is ahead, but if we were to break down below the $60 level, I feel that the market will probably go towards the $58 level under there. Lots of volatility in the market during the trading hours have had traders very nervous.

Oil Forecast Video 14.03.18

Brent

Brent markets of course acted the same way, slicing through the $64.50 level, but found a bit of support at the $64 handle. I think that the market will probably continue to go back and forth and use the $65 level as a bit of a magnet for price, but longer-term I believe that the 63.50 level underneath is the “floor” in the current range. If we were to break down below there, then we will probably unwind. Until then, I anticipate that we may get a bit of a bounce after this knee-jerk reaction. Expect a lot of volatility in this market, but that’s nothing new for energy traders as we continue to see a lot of issues surrounding not only supply, but currency headwinds and the like. In general, I believe that this market will continue to be a difficult environment.

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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.