Crude Oil forecast for the week of July 10, 2017, Technical Analysis

Christopher Lewis

Updated Fri, Jul 7, 2017, 10:47 PM

WTI Crude Oil

The WTI Crude Oil markets initially rallied towards the $47.50 level, and then turned back around to break below the $45 level. The market looks very likely to continue rolling over, as the oil markets are far oversupplied. Also, there are talks about the Russians not participating in production cuts while the US producers have no inclinations to do so either. Given enough time, the market should then break down below the $40 level, and once that happens it would be a massive breakdown and bearish sign in the market. I believe that the WTI market continues to be a “seller rallies” type of situation but it might be easier to do office short-term charts as if the daily timeframe.

WTI Video 10.7.17

Brent

Brent markets tried to rally’s well, but found enough resistance at the psychologically important $50 level to turn around and fall significantly. We break down below the $47 level, which of course is a very negative sign as well. I think the $45 level underneath continues to offer support, but it will only be a matter of time before we break down below there and continue to grind much lower. Quite frankly, OPEC has lost all control of the market, so any type of production cut will be short-term bullish at best. I believe that the longer-term situation is going to call for cheaper oil, and this could go on for years. I’m a seller rallies and of course breakdowns that show fresh, new selling strength, and therefore this is a market that I think will offer a lot of opportunity if you are patient enough to look for higher levels to sell from on short-term charts. I see no reprieve for oil that will last any significant amount of time.