Crude Oil forecast for the week of February 26, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market rallied significantly, reaching towards the $63.50 level. We are testing the bottom of an uptrend line, and that should be resistive. However, I think that the one major driving force that we have consistently seen has been a softening US dollar. So, it’s possible that might be a problem if you plan to go short. Currently, the market is in a bullish uptrend, but I think we are starting to see the markets exhaust themselves, because quite frankly, the oversupply of crude oil will continue to be an issue as Americans are starting to drill.

WTI Video 26.02.18

Brent

Brent markets rallied during the week as well, reaching towards the uptrend line, showing signs of exhaustion. We have broken above the $65 level, and it looks as if we are going to find sellers eventually. The $67 level should be resistive, and I think that it’s only a matter of time before sellers return. The $70 level above should be massively resistive, just as the uptrend line should be. If we turn around and fall below the $65 level, I think we will start to get a lot of bearish pressure to the downside. Alternately, if we break above the $70 level, the market should continue to go much higher I think that this market continues to be very noisy, but I would be very cautious about going long of this point.