Crude oil markets rally during Thursday session

WTI Crude Oil

The WTI Crude Oil market has rallied a bit during the trading session on Thursday as we reach towards the $66 level. Ultimately, I think that the $66 level and more importantly, the previous uptrend line just above it, could offer quite a bit of resistance, so I think it’s only a matter time before we see exhaustion that we can start selling. However, if we were to break above the uptrend line and close above there on a daily candle, then I think the buyers will have jumped significant resistance and it could be trusted again. It will be interesting to see how this plays out but breaking down below that uptrend line was in fact a very negative side.

Brent

Brent markets rallied a bit during the trading session on Thursday as well, breaking towards the $76.50 level. I think that the market should continue to go higher at this point, perhaps reaching towards the $78 level. I think $78 will be a significant amount of resistance just waiting to happen, so I think that selling and that area would make sense on signs of exhaustion. By bouncing the way we had from the $75 level, I think it’s likely that we will continue to see a lot of choppiness, and perhaps a lot of back-and-forth type of trading. Brent seems ready to outperform the WTI market, and as a result I expect the spread between the two markets to widen.

Crude Oil Forecast Video 08.06.18