Crude Oil breaks out to the upside during the trading session on Wednesday

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the trading session on Wednesday again, breaking above the $66 level, an area that I thought was a major resistance level. If we can break above the recent highs at the $67.50 level, I think at that point were willing to go to the $70 level. Short-term pullback should be buying opportunities, with the $65 level being support. If we break down below there, I think that the market would go looking towards the $64 level next, and then possibly the $63 level.

Brent

Brent markets rallied during the trading session on Wednesday, reaching towards the $73 level. That’s an area that is a large, round, psychologically significant number, so we have pulled back just a little bit. I think there’s plenty of support underneath though, extending down to at least the $70 level, an area that will have a certain amount of psychological importance, as well as structural importance. We also have the uptrend line underneath on the daily chart that has acted as support, so it’s not until we break down below that level that I’m comfortable selling. After the move on Wednesday, it’s likely that we will try to continue to go much higher, although the oversupply issue will remain in the back of traders’ minds. Now that we have broken out a little bit, it’s likely that we will continue to see buyers jump in.

Crude Oil Price Forecast Video 12.04.18