Crude Oil Price forecast for the week of February 19, 2018, Technical Analysis

Christopher Lewis

Updated Sat, Feb 17, 2018, 12:42 AM

WTI Crude Oil

The WTI Crude Oil market had a decent week, eating back about 40% of the losses from the previous week. Ultimately though, we are pressing the bottom of an uptrend line, and I think it’s only a matter of time before the sellers get involved. At this point, with the oversupply of crude oil market, it’s likely that we will continue to see bearish pressure. Granted, we have a softening US dollar and that does help the crude oil market, but in the end, I believe that we have seen the highs for the year and would not be a buyer until we cleared the $66 level, something that we are a decent distance from.

Brent

Brent markets also rallied, struggling near the $65 level on Friday. It is the bottom of an uptrend line that the market had been paying attention to for quite some time, but I think at this point we are going to see the oversupply continue to punish this market, and I think that the $65 level is essentially a significant amount of resistance that extends to the $70 level. It’s not until we break above the $70 level that I am comfortable buying again, because it will have shown a significant resurgence of buying pressure. On signs of exhaustion, I am more than willing to start selling, as I think we could go down to the $60 handle, perhaps even $57.50 underneath.