Crude Oil markets break support during Monday

Crude oil markets fell down through a major uptrend line during the day on Monday, as we continue to see bearishness in this market. I think that we are going to continue to see a lot of volatility, but this is a major break, and could lead to a large move over the next couple of weeks. · FX Empire

Christopher Lewis

Updated Mon, Jun 4, 2018, 10:24 PM

WTI Crude Oil

The WTI Crude Oil market has broken down through a major uptrend line, slicing through the $66 level. That’s an area that has attracted a lot of attention recently, and now that we have broken through there I think that we will probably continue to find sellers. I think the $65 level will offer a little bit of psychological support, but based upon the longer-term charts, I think that we could do go a bit lower, and I think that rallies are to be sold on signs of exhaustion. If we were to break above the $67 level, then you could begin to start buying again. Until then, I think there is a lot of possibilities.

Brent

Brent markets have fallen as well, reaching towards the $75 level. If we can break down below the $74.50 handle, I think the market could go much lower, and I think that a short-term bounce could offer a nice selling opportunity as well, especially if we can find some type of exhaustion. Overall, I think that it’s going to be difficult for this market to rally without some type of nudge from either OPEC or Russia, but the recent build in inventories in America of course won’t be helping anything either. If the US dollar were to suddenly pick up strength, that could also work against the value of crude oil. Beyond that, concerns about a trade war could have the idea of demand down as well.