Crude Oil Forecast July 19, 2017, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially tried to rally on Tuesday, but found the area just below the $47 level to be far too resistive to continue going higher. The $46 level underneath should continue to be supportive, but if we can break down below there, I feel that the market will probably break down to the $45 level next. This is a market that should continue to see quite a bit of volatility, because of the Crude Oil Inventories announcement coming out today. Quite frankly, I think we could see a massive move but I still believe that there is a bearish overhang in this market, and therefore it’s very unlikely that we will see any longer-term rallies last. I believe that selling the rallies and of course breakdowns will be the best way to go.

Oil Forecast Video 19.7.17

Brent

Brent markets went sideways initially, and then shot to the upside during the day on Tuesday. The $49 level has been resistive in the past, and I think should continue to be so. I think that there is a “sell on the rallies” type of situation going forward, and I believe that the $50 level is the absolute “ceiling” in the market. The $48 level below will be the target, and a breakdown below there should send the market down to the $47.25 level. Oil markets continue to see volatility, and I believe that the market is going to be influenced by the inventory number coming out during the day. Ultimately, I believe that selling is probably going to be the best route going forward.