WTI Crude Oil
The WTI Crude Oil market went back and forth during the week, trying to break above the $70 handle but failing. We also found plenty of support near the $67 level, so it’s likely that we will continue to see volatility. It’s going to be difficult to trade this market from the longer-term, as I think we are essentially stuck in a range between the $67 level and the bottom and the $70 level on the top. If we can break above $71, then the market probably goes to the $74 level above. If we break down below the uptrend line underneath, then the market should break down significantly.
Brent
Brent markets were a little bit more negative than the WTI market, as we have touched the uptrend line. The $72 level offering support as far as I can see, making a nice opportunity for buying if we can stay above there on a pullback. However, if we can break above the $76 level, that’s also a buying opportunity as we should then go looking towards $79. Otherwise, if we break down below the uptrend line, then the market probably goes down to the $70 level, a large, round, psychologically significant number. A breakdown below that level sends this market down to the $67 level. Remember, this is a market that should continue to be noisy overall, and probably difficult to trade from a longer-term perspective until we break out of this small range.
