Crude Oil Price Forecast – crude oil markets stabilize on Thursday

Crude oil markets were absolutely pummeled on Wednesday, but Thursday has been a fairly quiet affair. That’s good, because quite frankly the selloff had been so brutal that the markets need to take a bit of a breather. · FX Empire

Christopher Lewis

Updated Thu, Jul 12, 2018, 9:48 PM

WTI Crude Oil

The WTI Crude Oil market has stabilized a bit during the trading session on Thursday as the $70 level has offered a bit of psychological support. However, I would point out that beyond psychological support, there’s nothing on the chart that tells me we should hold a lot of faith in this level. We could obviously bounce, but I think that after seeing the brutality of the selloff during the day on Wednesday, we are very likely to see sellers jump back in on rallies. While I not necessarily ready to start shorting this market from a longer-term perspective, I do think that short-term rallies will find a lot of selling pressure.

Brent

Brent markets tried to rally during the trading session on Thursday but found enough resistance at the $75 level to turn things around the start selling off again. This market was especially hard-hit during the day on Wednesday, as attested a major uptrend line. I think that if this market breaks down, you should look to short the WTI Crude Oil market immediately, especially if the uptrend line gets broken. It’s not that you can’t short Brent, it’s just that WTI will need to play catch-up, offering you a better opportunity. I have no interest in buying this market, but I do recognize that a move above the $75 level would probably send this market looking towards the $76.50 level above. This is a very noisy market, but decidedly negative as of several days ago.