Crude Oil Price forecast for the week of February 12, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market has broken down below the $60 level during the week, which of course is a psychologically important level. There is a lot of support just below though, so we could have a bit of a fight on our hands. If we break down below the uptrend line, the market should then go much lower. I think that the market should continue to be negative overall, but we may get a bounce in this general vicinity. All things being equal, I think that the Americans are about to flood the market with crude.

WTI Video 12.02.18

Brent

Brent markets broke down during the week, slicing through the $65 level, and look likely to go down to the $60 level. We have already broken down below the uptrend line, so I think we are going to continue to see selling pressure. If the US dollar starts to rally again, that will of course put even more pressure on this market. Ultimately, I think that the market breaking below the $60 level should send this market much lower, perhaps down to the $56 level. That’s an area that should be supportive, but at this point I think rallies are selling opportunities and I think that the $70 level is probably the highs for the year. Ultimately, this is a market that should be volatile, but I think the oversupply is going to overwhelm the market in general. Ultimately, I think that market has gotten far too ahead of itself.