Crude Oil Price forecast for the week of December 11, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market fell significantly during the week, but found enough support near the $56 level to turn around and form a hammer. The hammer sits at the $57.50 level, and that suggests that we are going to continue to find the reasons to go higher, perhaps reaching towards the $60 handle underneath. That’s an area that continues to offer a lot of resistance though, so I think it’s going to take a certain amount of bullish momentum and perhaps a few catalysts that we are not aware of to break out. Nonetheless, it does look like the momentum is with the buyers, so one would have to think it is certainly possible. It’s probably easier to trade this market from a short-term perspective though.

WTI Video 11.12.17

Brent

Brent markets look very much the same, initially pulling back during the week but forming a massive hammer sitting just below the $64 level. I think we are going to break out and go looking towards the $65 level, with the $60 level underneath offering support. The volatility continues but it seems as if the buyers are becoming more tenacious when it comes to putting money in the market, and that of course should help the market try to rally. I expect that is can be easier to trade this market from a short-term “buy on the dips” mentality more than anything else, so keep that in mind as although bullish, we certainly have a lot of work ahead of us if we are going to break out significantly.