Crude Oil Price forecast for the week of February 5, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market fell during the week, breaking below the $65 level to show signs of weakness. However, there is a massive uptrend line underneath, and I think it’s only a matter of time before we will find support underneath. We are bit overdone, so quite frankly this pullback should be a nice opportunity to start buying, especially near the $62 handle. I think that the US dollar falling longer-term will continue to help the gold markets, and for what it’s worth, I’ve recently had a conversation with some people at Goldman Sachs suggesting that $80 a barrel is probably the target. I’m not quite so bullish, but that gives you an idea of where Wall Street is looking.

Brent

Brent markets formed a negative weekly candle at the $70 level, and quite frankly this is a sign that we should fall. However, I think this is the market looking for support below, which it should find at either the $67.50 level, an area that has been important on the short-term charts, or perhaps the $65 level underneath which is more of a “reversion to the mean” on the Bollinger Bands indicator.

No matter what happens, I anticipate that there are value hunters underneath, so longer-term traders should be looking at this as a potential buying opportunity just waiting to happen. However, let the market come back to you before you start buying. The alternate scenario of course is that we just break to a fresh, new high, which is also an obvious buying opportunity.

WTI Video 05.02.18