WTI Crude Oil Technical Analysis
The West Texas Intermediate market has done very little during the early hours on Tuesday, which is actually a very bullish sign considering we have recently broken out and it looks like we are willing to just hang out, and that is a good sign considering that the breakout had been so strong. All things being equal, this is a scenario that I think given enough time, you have to look at each pullback being an opportunity to get involved again.
Crude oil certainly is about to head into a very bullish time of year as traders will look at demand picking up through driving, flying, et cetera. Furthermore, supply issues have come into the picture as well. So, I think you will continue to be a buyer. And I do think that we will eventually get to $85.
Brent Crude Oil Technical Analysis
The Brent market looks very much the same as you would expect. Another thing that I would point out is that Brent is getting ready to see the golden cross, much like the WTI grade, and we have broken out here. In the Brent market, I anticipate that we are going to look to the $90 level. Short-term pullbacks will be bought into.
Clearly, we’ve broken above a major resistance barrier. In general, this is a situation where we are in a cyclically bullish time of year, so it does make a lot of sense that we just follow that pattern. The fact that there are geopolitical concerns around the world also adds more credence to this. So, I think you have to look at this through the prism of a market that you’re trying to find value and then taking advantage of it.
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