Crude Oil Weekly Price Forecast – crude oil markets find massive resistance

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the week but found enough resistance at the $75 level to turn around and fall significantly. We break down from there to reach towards the $70 level underneath, which has offered temporary support. While this is psychologically important, it’s not necessarily a major level based upon recent price action. Because of this, I would not be surprised at all the see the market drift a bit lower towards the uptrend line.

The alternate scenario of course is that we turn around and break above the $75 level, allowing the market to go to much higher levels. With the Libyans open up the ports, this throws more supply into the marketplace, and of course if we continue to see a historically strong US dollar, that could continue to put bearish pressure on this market as well.

Brent

Brent markets tried to rally initially during the week but found enough resistance near $80 level to turn around. We broke down significantly through there and below the $75 level. The uptrend line of course offered support, but at this point I think that the Brent market will continue to look softer than the WTI market. If we break down through the uptrend line, I might actually start shorting the WTI market because it will have some catching up to do. The alternate scenario of course is that we break above the $80 level, and that should send more of a “buy-and-hold” attitude into the market.

WTI Video 16.07.18