Crude oil markets break out during the session on Monday

WTI Crude Oil

The WTI Crude Oil market broke above the $70 level, which has been a resistance barrier as of late. Now that we have cleared that area, it’s likely that we should continue to go higher, and the $70 level should be supportive. I think the support runs down to the $69 level, so it’s not until we break down below there that I would be concerned about any move higher. I think there are plenty of support levels underneath to keep this market going higher, despite the fact that the US dollar has been strengthening as of late. That in and of itself is rather impressive.

Brent

Brent markets have smashed through the $75 level rather impressively, and it now looks as if we will probably break above the $76 level. I think the $75 level underneath should be supportive, and I think there is support underneath there as well, especially considering there is such a large gap down to the $74 level from several days ago. I believe that this market will find plenty of buyers underneath, and if the US dollar were to turn around and start falling, that will only exacerbate the situation. I believe that the $77.50 level is the initial target, followed by the $80 level after that. I believe that the dips in this market will continue to be thought of as value that they can take advantage of.

Crude Oil Video 08.05.18