Crude Oil Price forecast for the week of December 4, 2017, Technical Analysis

Christopher Lewis

Updated Fri, Dec 1, 2017, 10:36 PM

WTI Crude Oil

The WTI Crude Oil market has initially fallen during the week, but found enough support underneath the $57.50 level to turn around and form a hammer. The hammer is a bullish sign, and if we can break above the $60 level, the market should continue to go much higher. If we break down below the bottom of the hammer, then it probably sends this market down to the $55 handle. Remove below there should send this market towards the $50 level. I think we will continue to see a lot of volatility but at the end of the week, it looks as if we are gonna continue to see buying pressure initially. This may be due to a falling US dollar more than anything else. OPEC did extend production cuts, but as we gain value, Americans will flood the market with supply.

WTI Video 04.12.17

Brent

Brent market went back and forth during the week, but also found itself forming a hammer for the third week in a row, which is a very bullish sign. The $64 level above extends to the $65 handle, so it’s probably going to be very difficult to send this market to the upside, and it is going to more than likely be very choppy to say the least. Because of this, although I feel that the market is rallying, it’s probably going to be very difficult to go long Brent, and therefore if I am going to place a long position in either one of these markets, it would be the WTI Crude Oil. In general, if we break down from here I think that the $60 level would be supportive. A breakdown below there should send this market much lower, perhaps reaching towards the $55 level.