Crude Oil Price Forecast – crude oil rolls over
WTI Crude Oil
The WTI Crude Oil market broke down a bit during the day on Monday as the Saudi Arabia government agreed to provide more crude oil to the markets, driving up the amount of supply available. Between that and a strengthening US dollar, the bearish pressure was too much and we rolled over, breaking below the $70 level rather handily. I believe that the market will probably go looking towards the $68 level next, where there was significant demand previously. Rallies at this point will probably be a nice selling opportunity.
Brent
Brent markets look even worse, as we have started to slice through a significant uptrend line. At this point, I think that if we break down below the $72.50 level, the market will probably reach down to the $70 level longer-term. Short-term rallies are probably going to be sold off, with the $75 level above being significant resistance. I believe that the market is especially sensitive to Saudi oil coming online, and therefore I think we will continue to see sellers after what has been a significant break down. As I record this, we are down roughly 2.33% for the day, and it’s still early.
Rallies at this point are not to be trusted, at least not until we break above the $75 level on a daily close, something that doesn’t look likely in the short term. Expect volatility, but I would expect more negativity than anything else.
Crude Oil Video 17.07.18
This article was originally posted on FX Empire
