WTI Crude Oil
The WTI Crude Oil market broke above the $66 level during the trading session on Monday, but by the time the Americans came in for work, they started selling oil. Ultimately, I think that if we break down below the $65 level, the market probably breaks down, perhaps reaching down towards the $63 level. I think that the uptrend line is still something that you should pay attention to, so at this point it is a short-term trade only. The market will continue to be volatile, because it is under various competing pressures. We have Middle East tensions again, and of course the potential trade war between the United States and China. Because of this, I would anticipate a lot of noise.
Brent
Brent markets tried to rally as well but have given back most of the gains as the Americans have shown up. If we break down below the $60.50 level, it’s likely that we will probably try to roll over, reaching down to the $68 level. Beyond that, you’re more than likely going to see the market break down to the $65 level after that. The alternate scenario is that the top of the range for Monday gets broken, which would be a very bullish sign and would continue the overall uptrend. Because of that, I think the market will then go looking towards the $72.50 level. We might be a little overextended in the short term, so a pullback would make sense regardless.