WTI Crude Oil
The WTI Crude Oil market broke higher during the week, slicing through the $47.50 level, and the top of the wick from the previous week. As we approach the $50 level, I cannot help but think that there will be a certain amount of resistance in this area. Because of this, I would anticipate a bit of resistance that could pull this market back, but longer-term we will have to see. A daily close above the $50 level would be very bullish and have this market looking for the $52.50 level. The markets have been extraordinarily volatile, so tight stop losses would be recommended. Also, perhaps a smaller than usual position size. It will be interesting to see what happens next, but I think longer-term, we are at best reaching the $55 level above which is the top of the recent consolidation.
Crude Oil Inventories Video 31.7.17
Brent
Brent markets sliced through the $50 level like they weren’t even there. That being the case, and now finds itself closing on the $52.50 level, and then probably reaching towards the $55 level after that. Some type of exhaustive candle would be needed to start selling, and we certainly don’t have it right now. Because of this, I believe that the buyers will continue to push this market higher, lease for the short term. Longer-term, I believe that the $55 level offers a significant amount of resistance. Because of this, I believe that you will need to be somewhat nimble, and longer-term traders may be dissuaded from putting a lot of money into the market. Certainly, a lot of oil traders out there have been fooled more than once, so skittish behavior probably would make quite a bit of sense over the next few weeks.
This article was originally posted on FX Empire