Crude Oil Price Forecast March 6, 2018, Technical Analysis

Updated : Mar 6, 2018, 05:24 UTC•2min read

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Crude oil markets exploded to the upside during the trading session on Monday, reaching towards the upper bands of the last couple of days trading, so it’ll be interesting to see if we can continue to go higher.

WTI Crude Oil

The WTI Crude Oil market rose towards the $62.75 level at the time of writing and seemed poised to test the $63 level. Ultimately, I think some resistance will come back into this market, between here and the previous of trend lines. The markets continue to see a lot of noise in this market, but this most recent bullish move should continue to make things interesting. There are rumors of potential production cuts coming out of OPEC, but we have also seen some ministers say that it hasn’t been discussed yet. Because of this, I think that we will continue to see a lot of volatility, and it’s only a matter of time before the sellers return. I’m looking for some type of exhaustive candle after this move to start shorting.

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Brent

Brent markets also rally during the day, breaking well above the $65 level. It looks likely that we will continue to see volatility in this market, and I think that we will eventually break above the $66 level, looking for even more resistance above. I think the previous uptrend line will continue to offer an issue, so I’m looking for an opportunity to short this market. In the meantime, I would anticipate that we will see a lot of noise and potential volatility, so I think that traders will be skittish and will be willing to jump out of the market as soon as trouble shows. I’m looking for some type of exhaustive candle after a rally, so I can start shorting, I believe that longer-term we continue to have issues.