collected by :Jack Alex
On Friday, July WTI Crude Oil closed at $45.83, up $0.19 or +0.42% and August Brent crude oil futures settled at $48.15, up 0.29 or +0.61%.
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading slightly higher early in the session on Monday.
With the market trading around $46.00, short-sellers are probably questioning the risk/reward of shorting at current price levels.
ForecastAs far as WTI crude is concerned, oversold conditions could trigger a short-covering rally today if the buying is strong enough to take out Thursday’s and Friday’s highs at $46.18.
The price action last week also suggests that buyers are coming in to defend the May 5 bottom at $44.13.
WTI Crude OilThe WTI Crude Oil market fell significantly during the week, crashing towards the $45 level.
If we can break down below the bottom of the weekly range, then we should then go looking for the $45 level underneath.
All things being equal, it looks as if the sellers are going to take over rather soon, and really punish the oil markets.
If we do rally, I need to see a move above the range for this past week to start buying.
, I believe that the sellers get involved and tested the uptrend line that I find is very important.