Crude Oil Markets Have Breakout During the Week

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially fell during the course of the trading session but then turned around to show signs of strength again. All things being equal, the market continues to see plenty of strength, and I think at this point we are breaking out and ready to go much higher. Ultimately, there is a short-term support level underneath that should continue to keep this market going forward. If we were to break down below the bottom of the candlestick, then it is likely that we break down significantly to go much lower. I do not necessarily think we will, but it is something to keep in the back of your mind.

WTI Oil Video 31.01.22

Brent

Brent markets did the same thing as you would expect, pulling back initially to test the $85 level for support before taking off to the upside. At this point in time, the market looks as if it is ready to go higher but you have to be cautious about getting overly aggressive. Short-term pullback should offer longer-term buying opportunities and it now looks as if the Brent market is ready to go looking towards the $100 level.

A breakdown below the $85 level could send this market lower towards the $80 level in order to find value hunters coming into pick the market up. Regardless, I have no interest in selling this market because it is so clearly bullish. At this point, it is more or less going to be a timing thing more than anything else, as it is obvious as to which direction we are going ahead. $100 target notwithstanding, this is a bullish market regardless and therefore I like the idea of taking advantage of it.

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