Crude Oil Price Forecast January 2, 2018, Technical Analysis

Christopher Lewis

Updated Fri, Dec 29, 2017, 9:51 PM

WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session initially, but found Friday to be too insignificant to continue the movement. We are starting to hover around the $60 level, and I think this is probably where we are going to start looking for support. If we can break above the $60.30 level, the market should then be able to go to the $62.50 level over the longer term. I think pullbacks continue to be buying opportunities, and as you can see on the hourly chart, I have an ascending triangle drawn, and we have broken above it and we are starting to look like a classic breakout just waiting to happen.

Crude Oil Inventories Video 02.01.18

Brent

Brent pulled back slightly during the session, but there is a nice uptrend just below, and it should continue to offer support for the marketplace. I believe that we will probably go to the $67 level above, which offered resistance earlier last week. I think that a breakdown below the uptrend line sends this market down to the $65 level, which of course is a large, round, psychologically significant number. At that point, I think it’s only a matter of time before the buyers return. The $70 level above will be difficult, but reachable. If we were to break above that level, it would be a bit surprising that the market should continue like that. I believe that we will continue to see choppy trading conditions, but it certainly looks as if the buyers are starting to jump into the crude oil markets.