WTI Crude Oil
The WTI Crude Oil market rallied a bit during the day on Wednesday when it opened, and then went sideways. The 24-hour exponential moving average continues to offer support, and I believe that the market should continue to find buyers on dips. The $45 level above is a major resistance barrier though, and we have not broken above there at the time of recording. If we do break above there for any real length of time, I feel that the market then goes to the $46 level. It is not until we close above there on at least an hourly chart that I’m willing to put money to work though, so in the meantime I’m going to be patient. If we do show signs of rolling over, I then am a seller as the market will probably go down to the $44 handle underneath. The oil markets got a mixed message from the inventory announcement during the day.
Crude Oil Price Forecast Video 29.6.17
Brent
Brent markets also rally during the day, as we broke above the $47 level. We have since pulled back to that level and found support, so it’s likely that we could continue to go towards the $47.50 level. Alternately, if we did breakdown below the $46.50 level, then the market roles over again. I think that we may see a little bit more bullish pressure in the oil markets overall, but this is going to be short-term at best. Given enough time, the oversupply issue will continue to weigh upon the patrolling markets. I think we are simply oversold, and that makes quite a bit of sense that we would rally as a result. We are possibly going to see a bit of a short covering rally, but beyond that I wouldn’t expect much. Fundamentally, nothing has changed.
This article was originally posted on FX Empire