WTI/CL Technical Analysis
The crude oil market has found itself plunging again here early in the trading session on Friday. So, looking at this, I think you’ve got a situation where traders are going to continue to see this as a market that is making every bit of effort to break to the downside. We have a big H pattern here. If we break down below $60, then you have a move, I think, at least to the $56 level.
Ultimately, I think there are a lot of things going on at the same time that are negative, not the least of which will be an oversupply of crude oil and of course a concern about slowing economic growth. A treaty in the Middle East at least calms things down a bit, although truthfully, I don’t think that’s been a main driver for a while, but all of these things added up, of course, will continue to have an influence. If we do rally from here, I think you’re just looking for rallies that show signs of weakness to start selling into on a wick or something to that effect.
Brent Technical Analysis
Brent markets find themselves challenging the $64 level. If they break down below there, then it’s very likely that Brent continues lower, perhaps down to the $60 level. Crude oil looks miserable at the moment overall, and I think that is going to continue to be the case. So, with this, I just think you’re looking for opportunities to get short, but they’re probably short-term opportunities. I would anticipate the market eventually breaking down, but in the meantime, I think it’s going to remain very choppy with a downward bias.
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