Crude Oil Price Forecast February 12, 2018, Technical Analysis

Christopher Lewis

Updated Fri, Feb 9, 2018, 9:32 PM

WTI Crude Oil

The WTI Crude Oil market has broken down significantly during the day on Friday, losing over 2% as I record this. The market looks as if it is ready to go much lower as we have broken a major uptrend line, and therefore think that rallies will be selling opportunities. The market will probably go looking towards the $57.50 level next, and then eventually the $55 level. Currently, I look at the $62 level above as massive resistance, and a break above there would be a massive side of bullishness. I highly doubt this is going to happen though, and I continue to look at rallies as selling opportunities.

Crude Oil Inventories Video 12.02.18

Brent

Brent markets also fell significantly during the trading session on Friday, clearing the $63 level. We are now well below the weekly uptrend line, and I think that the bearish pressure will continue. Because of this, I am a seller on rallies that show signs of exhaustion, and I think that the $65 level will be massive resistance. Ultimately, I think that if we roll over from here, we will probably go looking towards the $60 level, which of course will be more significant from the psychological point of view. Expect volatility, but every time we rally I would anticipate that sellers will flood into the market, taking advantage of what is a very significant shift in attitude as oversupply becomes a major problem