Crude Oil Price Forecast March 5, 2018, Technical Analysis

Christopher Lewis

Updated Fri, Mar 2, 2018, 9:18 PM

WTI Crude Oil

The WTI Crude Oil market continues to fall during the Friday session, as traders look at the potential of a trade war coming out of the United States as negative for the oil market. Rallies at this point should be selling opportunities, perhaps reaching towards the $60 level next, and then a breakdown below there should send this market much lower, perhaps reaching towards the $55 level. Ultimately, I think that there will continue to be a lot of noise, but there is most certainly a negative proclivity to this market.

Brent

Brent markets also fell, reaching towards the $63 level. I think that the market probably goes to the $60 next, and then eventually the $55 level after that. I believe that any time we rally, the sellers will come back into this market as there should be a “ceiling” in the market, near the $65 handle. I think that it’s only a matter of time before people start shorting this market again. Ultimately, I think that we have seen the highs in petroleum markets for the year, and that we will continue to find reasons to sell off. Obviously, we will have the occasional rally, but my bias is certainly to the downside at this point, as we have peaked for the year from what I can tell. There is a previous uptrend line that we have broken down below, and at this point it looks as if the trend has changed.