Crude Oil Price Forecast – Crude Plunges in Early Hours on Friday

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has had a rough couple of hours in the early part of the Friday session as we continue to see a lot of volatility in the world’s markets. Quite frankly, it’s hard to determine what traders are going to do next, just simply because everybody seems to be in a panic mode of reacting to the last five minutes. This is a very volatile market. And as yesterday, it looked like we were trying to form some type of inverted head and shoulders. Now, it looks like we could just break down to the $71.50 level again.

Quite frankly, this is not a market you should be trading in this environment, although I can give you several reasons why crude oil should be going in one direction or the other, such as geopolitics should put a little bit of a floor in it. But at the same time, economies around the world seem to be slowing down, so that puts downward pressure on it. With that being said, this is probably a market to leave alone.

Brent Crude Oil Technical Analysis

The Brent market looks the same as you would expect, with the $75 level underneath being the massive support level. We were forming an inverse head and shoulders over here as well, but that has essentially been destroyed and less of course, we spend quite a bit of time building back up and perhaps forming some type of complex head and shoulders or complex inverted head and shoulders, I should say.

And at this point in time, I just don’t think it’s worth the risk. This is not a very stable market at the moment and therefore you have to be very cautious. And if for some reason you do find yourself trading in this market, the most important thing would be to keep your position size small.

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