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WTI Crude Oil
The WTI Crude Oil market initially fell during trading on Monday but found support just above the $67 level to turn around and rallied. That is an area that is massively supportive, but even if we were to break down below there it’s likely that we would see plenty of support at the $66 level as well. I believe that although we are seeing a bit of choppiness, I believe that the $70 level above will be resistance in what is now a nicely defined short-term consolidation area. I like the idea of buying dips, lease for short-term periods. I don’t know whether we can break above the $70 level, but if we do it should send the market to the $72.50 level.
Brent
Brent markets gapped lower at the open on Monday, reaching down to the $73 level before finding buyers. The bounce has been significant though, so I think at the very least we are going to turn around to fill the gap. If we can break above the $75 level, then we are free to go much higher, but currently it looks as if we are in more of a consolidation phase than anything else. If we were to break down below the $72.50 level, then I think we could drop towards the $71 level. Oil markets overall look like they are hanging tough, so I like the idea of going back and forth, playing a range bound type of system, perhaps using the stochastic oscillator to help with your trading decisions.
Crude Oil Video 01.05.18
This article was originally posted on FX Empire