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Published on 13 Feb 2017
The
WTI Crude Oil market fell significantly during the day on Monday as
traders begin to focus on the oversupply. Even though we’ve had a
production cut come out of the OPEC countries, the reality is that they
aren’t going to be able to overwhelm the market. There is far too much
in the way of supply to think that demand can take it out, and because
of this I believe that it’s only a matter of time before the sellers
take over completely. However, we are obviously not ready to do that
yet. The 50-day exponential moving average just below will continue to
offer dynamic support, so it’s likely that we will see a lot of
volatility. Currently, I believe that the $54 level above is the
resistance, while the $51 level below that is support. Chopping back and
forth will be the way going forward, and I believe that the confusion
will probably only get stronger over the next several weeks. Sooner
rather than later I would anticipate a move in one direction or another,
and even if we break out I believe that the $60 level would cause even
more trouble.
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