Crude Oil Price Forecast January 17, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market pulled back during the trading session on Tuesday, as traders came back from the Martin Luther King Jr. holiday. The uptrend line on the hourly chart shows signs of support, but I think we will probably find even more support at the $63.50 level. Bouncing from here will probably send the market looking towards the $65 level above, which has offered resistance based upon the large, round, psychological aspect. Otherwise, if we break down below the $63 level, I think the market then drops to the $62.50 level next.

Oil Forecast Video 17.01.18

Brent

Brent markets gapped lower at the open, and then broke below the $70 level. I have an uptrend line on the hourly chart, and if we can break down below the $68.75 level, I think the market continues to go lower, perhaps reaching towards the $67.50 level. The $70 level above is going to continue to offer plenty of selling pressure, but if we were to clear the gap from the opening on Tuesday, then the market continues to go much higher, perhaps reaching towards the $72.50 level after that. The market continues to be very noisy, but quite frankly with the US dollar rallying, it makes sense that oil markets rolled over just a bit. Beyond that, Russia is talking about possibly leaving the production cuts proposed by OPEC, and that is a market just waiting for headlines to push around.