Crude Oil Price Forecast July 31, 2017, Technical Analysis

Christopher Lewis

Updated Fri, Jul 28, 2017, 11:18 PM

WTI Crude Oil

The WTI Crude Oil market initially tried to fall during the Friday trading session, but the 24-hour exponential moving average came in and offered support. I think that the market is now going to go looking towards the $50 level above, which is a massive barrier. If the level gets broken, that would be a very bullish sign, and that should send the market even higher. However, I think it’s more likely that we will see a bit of resistance in that area, and that could offer selling opportunities going forward. If we break above the $50 level, I think the next target will be the $52.50 level. Ultimately, this is a market that should continue to be volatile, but it looks as if the buyers are making a serious attempt at a breakout. I suspect that it will take a significant amount of momentum to finally break above there, so that would of course be very impressive.

Crude Oil Inventories Video 31.7.17

Brent

Brent markets rallied as well, reaching towards the $52.50 level. The $52.50 level is a psychological resistance barrier, but I think that we will break above there as the $55 level above is massively resistive. I believe the pullbacks offer buying opportunities, least until the WTI market roles over. I think that the WTI market will probably lead the way, as the bread market simply seems to follow. Given enough time, I suspect that the $55 level above will probably be where sellers step back in and try to take control. In the short term, obviously there are plenty buying opportunities on dips, and that’s exactly how I plan to approach this market, buying the dips. I think that the $50 level below should be massively supportive. Because of this, a breakdown below there would be very negative.