Crude oil markets show initial weakness but rally late in the week.

WTI Crude Oil

The WTI Crude Oil market initially fell during the week but found enough support near the $67 level to turn around and form a hammer. The hammer of course is a very bullish sign, and I think if we can break above the top of the hammer it’s likely that we will reach the $72.50 level next, and then perhaps even higher than that, perhaps to the $75 level. I think that the $67 level underneath is support, and I believe that the uptrend line underneath also offer support. I have no interest in shorting this market, and I believe that pullbacks will offer value the people will continue to take advantage of.

Brent

Brent markets initially fell during the week, reaching down to the $72.50 level for support, turning around to bounce and reach towards the $72.50 level, but I think that we continue to go even higher. I think that the target is probably closer to the $80 level, and I have a left the uptrend line on the chart to show you just how bullish this market has suddenly become. Because of this, I think that the market continues to show signs of life and that we will more than likely reach towards $80, perhaps even break above there. It’s not until we break down below the uptrend line underneath, which is closer to the $70 level that I would consider selling this market. I think pullbacks continue to offer value the people will be willing to take advantage of.

WTI Video 14.05.18