CRUDE OIL technical Analysis and Weekly Forecasts for the week started with August 25, 2014
The light sweet crude markets had a negative week, breaking down below the $93.00 level at one point in time. However, we get a little bit of a bounce from there, and we are starting to ensure a fairly choppy region that has a lot of noise in it. Because of that, it’s very likely that the market will get a bit of a bounce here and continue going higher. The selloff has been brutal, and we recognize that there is a significant amount of support at the $90.00 handle as well, so even if we continue going lower, the downside is probably somewhat limited as we are oversold by just about any metric you want to measure this chart by. With that, we are looking for supportive candle in order to go long but don’t have it yet, and certainly aren’t interested in selling at this point unless of course we get some type of significant bounce.
The Brent market fell during the course of the week as well, but got a little bit more of a bounce off the $101 level them the light sweet crude market did at it support area. Resulting candle is more of a hammer, and as a result on a move above the $103.50 level, we are willing to buy this market for move to $105.50 at the very least. We think ultimately this market could go much higher than that, but at this point in time we recognize that the market is still very much in a downtrend, but it appears that we are reaching significant support area and it’s difficult to imagine this market breaking down too much more.
If we do break down below the $100 level however, we think we would enter another bearish leg at lower and probably down to the $95 handle. Until then, we feel that the market is just far too bearish for us to join in this leads part of the move. Really at this point in time, you have either sold at this market already, or have missed the move.
