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Brent Crude Oil futures bearish forecast with new supply levels imbalances being created

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Brent Crude Oil futures forecast

Brent Crude Oil futures bearish forecast with new supply levels imbalances being created. Brent crude oil is correcting strongly after such a strong bullish move in the past months. Bullish impulses have become corrections and now there are a few daily supply levels created on the way down after such a strong rally.

Three supply imbalances have been created on Brent Crude Oil Futures around  $74, $72 and $69. Price has not retraced to them but it did retrace at lower timeframe supply levels on the H4 timeframe.

Brent Crude Oil futures supply and demand analysis on the weekly timeframe

There is no need to read about crude oil price fundamentals, why Trump won’t use his ultimate weapon, why Oil majors are going all-in on the US shale or why Saudis raise oil prices to Asia as demand spikes.

Chevron sold off much of its assets in the North Sea, no longer viewing the region as a high priority. Ithaca Energy, backed by Israel-based Delek, agreed to buy Chevron UK’s oil and gas assets in the North Sea for $2 billion, taking over interests in 10 producing oil fields, according to S&P Global Platts. In April, ConocoPhillips agreed to sell its North Sea oil and gas assets to Chrysaor for $2.68 billion. It, too, is focusing increasingly on shale. The exit of two oil majors from the North Sea in as many months highlights says a lot about both regions. Smaller oil and gas companies that hope to exploit mature oil fields in the North Sea are taking over from oil majors who longer view the paltry production figures as worth it.

No need for any fundamentals like those read above regarding some Oil companies and stocks. Brent Crude Oil has been rallying for quite some time, it’s too expensive and new supply levels and imbalances are being created. No more buying Brent crude oil. Similar scenarios are happening on Light Crude Oil futures #CL and Oil stock related companies.

Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and reacts strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.

Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

There are several ways of buying stocks. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.

Learn how to trade stocks and futures using our supply and demand strategy.

Alfonso Moreno
Alfonso Moreno
Full time trader, expert technical analyst and founder of Set and Forget supply and demand online trading community. Traveler, photographer and adventurer.

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