Crude Oil Price Forecast – another volatile session for Black Gold

Crude oil markets were very noisy during the trading session on Tuesday, initially shooting straight up but running into significant resistance that had formed previously. Once the Americans came on board, heavy selling entered the market, at least for the short term. However, markets have seen a bit of stabilization. · FX Empire

Christopher Lewis

Updated Tue, Aug 7, 2018, 10:04 PM

WTI Crude Oil

The WTI Crude Oil market reaches high as $69.80 during trading pre-market, but once the futures traders in America got involved, they slammed the market back down to the $69.15 area. Since then, we have bounced quite nicely and it looks as if the market is going to continue to try to grind to the upside, but I see so much in the way of resistance above the $70 that I think it’s going to take a specific “supply negative event” for traders to jump in and bust through this major barrier that I think it extends to the $71 level. I believe that we continue to see a lot of chop in the short term.

Brent

Brent markets were a bit more resilient, as they recovered the losses much quicker. The $75 level above continues offer significant resistance though, and I think it is going to take some type of news item to finally push this market above there. After that, I see significant resistance near the $75.50 level as well. In other words, although Brent looks resilient, it’s got a lot of work ahead of it to continue the move higher. On the other side of that coin, I see significant support below at the $74 level, so I think we are going to continue to see a lot of back-and-forth over here as well, making it an ideal commodity to trade back and forth on short-term charts.