Crude Oil Price Forecast July 11, 2017, Technical Analysis

Christopher Lewis

Updated Mon, Jul 10, 2017, 10:52 PM

WTI Crude Oil

The WTI Crude Oil market had a bumpy ride on Monday, as we initially fell, and then shot through the roof. The $45 level above should be resistive though, and I think that the sellers will return. The oil markets are oversupplied, and that has not changed, regardless of comments coming out from various oil ministers. Enough time, I believe that the sellers return, but the bullishness of course is going to be short-lived as a lot of it will simply be short covering. If we do break above the $45 level, the market probably will go looking towards the $46 handle after that. Choppiness will continue to be the mainstay of this market, but given enough time I do think that the selling pressure will overtake anything else that we see in this market, not the least of which will be influenced by the US dollar strengthening.

Crude Oil Video 11.7.17

Brent

Brent markets did the same thing, dipping below the $47 level, and then exploding to the upside and breaking above it. However, I still think that the higher we bounce, the more likely we are going to see sellers jumping in and punishing any type of buying. The market continues to see negative pressure, and I still think that the bread market is looking towards the $45 level. Because of this, I look at these rallies as wonderful selling opportunities in a market that continues to look horrible. The oversupply of crude oil continues to be a worldwide issue, and Brett of course won’t be exempt from it. If the US dollar continues to strengthen overall, that will course works against the value of oil also. I believe the $45 is the next target, and we could even break down below there. Headlines will continue to move the markets around violently in the meantime.