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Crude Oil markets rallied during the week again making fresh highs

By:
Christopher Lewis
Updated: May 19, 2018, 07:26 UTC

WTI Crude Oil The WTI Crude Oil market rallied significantly during the week as crude oil continues to get a bit of a boost from geopolitical tensions and

Crude Oil weekly chart, May 21, 2018

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the week as crude oil continues to get a bit of a boost from geopolitical tensions and of course the idea of the US leaving the Iranian deal taking product off the markets. I believe that short-term pullbacks should continue to offer buying opportunities, with the $67 level underneath is massive support and importance. The uptrend line underneath should continue to offer support as well, so I think that the pullbacks will be thought of as value opportunities. Longer-term, I believe we go to the $72.50 level, and then perhaps even towards the $75 level after that. I believe that the markets will continue to see a lot of volatility, but quite frankly I believe that as we are worried about Iranian oil coming off line, that could drive down supply overall.

Brent

Brent markets Higher at the beginning the week, reaching towards the vital $80 level. We have turned around of form a bit of the shooting star though, so we may get a short-term pullback. However, that short-term pullback will more than likely be a buying opportunity, perhaps reaching towards the $77.50 level, and perhaps the $75 level underneath there. If we can break above the top of the shooting star for the week, then I think the market could go much higher. In general, I believe that there is more than enough support underneath to keep this market going higher, so look at pullbacks as nice value opportunities. That being said, we need to see some type of pullback as an opportunity if you are patient enough. I believe that the market will continue to favor the upside although we are a bit overdone momentarily.

WTI Video 21.05.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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