WTI Crude Oil

The WTI Crude Oil market initially when sideways during the trading session on Friday but then turned around to show signs of life again. The $70 level of course is very important from a psychological standpoint, but quite frankly the structural standpoint isn’t overly compelling at this point. I think that rallies would make sense as we have sold off so drastically, but I think it’s only a matter of time before the sellers get involved and start shorting. Quite frankly, I believe between the $73 level and the $75 level we will see a lot of supply.

Brent

Brent markets bounced rather nicely after falling during the trading session on Friday, testing the uptrend line that has been so crucial for quite some time. I think that this bounce is a good sign, but it’s not until we break above the $75 level that I would put the money to work. At that point, I suspect that the $77 level will cause a bit of resistance as well, as I see so much in the way of supply. I think short-term buying is possible, but we are going to make a serious go at this uptrend line, and if we can break down to a fresh, new low, extensively below the $73 level, then I think the market probably unwinds down to the $70 handle after that. Expect volatility, but it certainly looks as if there are a couple of clear levels to pay attention to.

Crude Oil Inventories Video 16.07.18

This article was originally posted on FX Empire

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