Crude Oil Forecast December 20, 2016, Technical Analysis

WTI Crude Oil

The WTI Crude gamble oil market did almost nothing on Monday, as traders have come back from the weekend. Is a lot of confusion in the marketplace right now because some traders believe that the OPEC and non-OPEC countries deciding to cut oil production should have a massive effect on pricing power. However, there still seems to be a lot of concern about the oversupply, especially now that shale oil producers in Canada and United States will almost undoubtedly step been to take advantage of higher pricing. Because of this, I anticipate a lot of volatility and probably quite a bit of trepidation when it comes to trading this market between now and New Year’s Day. This is a market that has quite a bit of support at the $50 level, so if we could break down below there, that would be a very negative turn of events. We also have a significant amount of resistance at the $54.50 level, a break above there would be extraordinarily bearish. In the meantime, I think were simply going to go back and forth.

Brent

Brent markets look like they are starting to become a little bit exhausted, and could find themselves reaching towards the $53 level again. This is an area that has been supportive in the past, and of course a break down below there could be a very negative sign. Alternately, a break above the $57.25 level would continue the uptrend towards the $60 handle. Again though, there’s a lot of concerns when it comes to the liquidity at this point in the year, and quite frankly most traders are not looking to put on a large position. Because of this, it’s very unlikely that the markets are going to make any major moves, but they do have those parameters set in order to take advantage of any type of surprise. In the meantime, I would anticipate a lot of short-term back and forth type of trading will be done by smaller players in order to take advantage of a relatively quiet marketplace.

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