Crude Oil rally slightly on Tuesday, in relatively quiet trading

WTI Crude Oil

The WTI Crude Oil market broke down significantly on Monday, so even though we rallied on Tuesday, it paled in comparison to the ferocity of the selloff. I think that the market should continue to be very noisy, but ultimately I think that selling is harder to do in this area, as the uptrend line underneath continues to be a major support level, and I think it’s very unlikely that the market breaks down below there very easily, so it’s possible that we get a significant bounce. I suspect that between now and the inventory numbers, not to mention the jobs number on Friday, we will probably grind back and forth more than anything else.

Brent

Brent markets rallied slightly during the trading session on Tuesday, crawling up the uptrend line that you see on the chart. I believe that the market has a significant resistance barrier near the $60.50 level, as well as support near the $67.50 level. I think that if we rally above the $68.50 level, the market could go as high as the $70 handle. Otherwise, if we get the breakdown I think we could go as low as $66, and I think that it is going to be choppy to say the least. The uptrend line I have on the chart is a minor one though, so I’m not looking for any type of major breakdown even if we do drop below it. In the short term, I believe Brett will be just as choppy as the WTI market.

Oil Forecast Video 04.04.18