Crude Oil Price Forecast – Continue to See Support at Bottom of Triangle

WTI Crude Oil

The West Texas Crude Intermediate Crude Oil market has initially fallen during the trading session again on Thursday, but then turned around to show signs of life just above the 50 day EMA. It is also worth noting that there is an ascending trendline there that makes up the bulk of the trading as of late, so therefore it looks as if the market is going to try to continue reaching towards the $67.50 level. That being said, I need to see the market break above the top of the candlestick from Thursday in order to get long again. On the other hand, if we were to break down below the bottom of the candlestick, then I think we probably go looking towards the $62.50 level, possibly even down to the 200 day EMA.

Crude Oil Video 21.05.21

Brent

Brent markets went back and forth during the session as well, dropping below the 50 day EMA initially, and then testing that uptrend line before bouncing again. At this point, the market looks as ready to go higher, but we need to clear the top of the trading session for Thursday in order to go looking towards the $70 level which of course is a large, round, psychologically significant figure.

When you look at the charts, it certainly looks as if we are trying to go higher but if we were to break down below the $65 level on a daily close, then we could go looking towards the $60 level, perhaps even down to the 200 day EMA. With that being said, I still think we have more of the “reflation trade” coming into play.

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