WTI Crude Oil
The WTI Crude Oil market fell at the beginning of the session, then bounced towards the $45 level, and then fell again. It appears that initially traders may have thought that a stronger US jobs market may help demand for crude oil, but ultimately the higher interest rates the Federal Reserve are going to insist on will weigh upon the value of crude oil as it brings of the value of the US dollar. I think rallies at this point will be selling opportunities, and I believe that the $45 level should be resistive. If we can break down below the $42 handle, that would be a longer-term and catastrophic signal. I have no interest in buying, I believe rallies offer selling opportunities.
Crude Oil Inventories Video 10.7.17
Brent
Brent markets of course have been volatile but overall negative during the day. We break down below the $47 level, which was previously supportive, and it should now offer a bit of resistance. I think that if we can get down to the $45 level, the market should continue to try to break down and go even lower. I think at this point any time this market rallies, it is a selling opportunity, and this is a market that I think will continue to be a bearish market as the OPEC has no chance of affecting price in any meaningful way. The market looks likely to ignore production cuts, at least for anything more than a short-term bounce, so having said that I think that the opportunities that some type of headline presents would be very real. I’m selling exhaustive candles to the upside, and most certainly selling on a breakdown below the $46 level as it should send even more traders into the market on the downside.
This article was originally posted on FX Empire