Crude Oil Forecast: WTI, Brent Bulls Target Key Breakouts

WTI Crude Oil Technical Analysis

The light-sweet crude oil market continues to see buyers on dips, and the missile throwing by the Iranians and the Americans over the weekend only continues to give a little bit of upward momentum.

From a purely technical analysis standpoint, it looks like we’re getting close to trying to break the top of an ascending triangle, which, if I’m measuring correctly, basically puts us right back to the highs again. And if the war never ends, and at this point that’s an open question, that does make a certain amount of sense.

Short-term pullbacks at this point in time, more likely than not, will find traders trying to take advantage of cheap oil. The external pressure in the oil market is something that is a constant, and it just doesn’t seem like it’s going away. It’s almost like we need something really drastic to happen. And although I have theories, they’re just theories.

At this point, it certainly looks like Light Sweet Crude will continue to find value hunters.

The Brent Market Looks Very Much the Same

The Brent market looks very much the same. We are at $97.25 as of this.

The $100 level above, of course, is a large, round, psychologically significant figure in an area that was a swing high previously. Also, we have a gap from late May there.

There’s a lot of technical resistance in that area; whether or not it holds remains to be seen. But again, this is much like the light sweet crude market, where we have an ascending triangle that measures for a much bigger move.

Whether or not that plays out probably comes down to a handful of people in Washington, DC, and Tehran. Unfortunately, that’s the game we’re playing.

Again, it does look supported. The bulls still have plenty of reasons to be somewhat confident at this point, although erratic price action is not a real stretch of the imagination.

If you’d like to know more about how to trade natural gas, please visit our educational area.