Crude Oil Price Forecast – crude oil breaks out to the upsideCrude oil markets were very noisy during the trading session on Friday, breaking above the resistance that had formed after the massive selloff this week. That’s a very bullish sign, and I think we are going to return to a bit of normalcy here.
WTI Crude Oil
The WTI Crude Oil market was very noisy during the trading session on Friday, slicing through the $67 level, an area that needed to hold for the bullish case for crude oil to continue. At this point, the supply is probably a bit tighter than most people realize, and quite frankly we are just wonder to headlines away from trouble in the Middle East to send this market higher. At the same time though, the US dollar has strengthened, and that might be part with been weighing upon oil. After today’s action though, I do believe that we continue to rally from here, hanging about in the previous consolidation area between the $67 level on the bottom and the $70 level in the top.
Brent markets of course did the same thing during the trading session on Friday, breaking above the resistance from the previous session. It now looks as if we are ready to continue to grind towards the $75 level above, which has been the resistance barrier during previous consolidation. I think that the strengthening US dollar was probably the one thing to keep from exploding to the upside in general. I believe in buying dips, unless of course we break down to make a fresh, new low, then I think we would probably start heading towards the $70 level. Overall, this is a market that I think continues to be very noisy, but certainly seems to favor the upside based upon the longer-term trend lines.