Crude Oil Price Forecast – Crude Oil Continues to Press Top of TriangleCrude oil markets rallied significantly over the course of the week, but Friday was a bit of hesitation. This makes sense, as we are at the top of a major ascending triangle.
WTI Crude Oil
The West Texas Intermediate Crude Oil market broke above the $67 level, as it looks like we are ready to break out sooner or later. However, Friday was difficult to imagine being a time where people would throw a lot of money into the market, so at this point I think if we break above the top of the recent high in March, then the market can take off to the upside, perhaps reaching towards the $72.50 level. At this point, it looks like we could get a little bit of a pullback but at the $65 level is a large, round, psychologically important support level that could come back into play. Furthermore, the uptrend line comes into the picture as well, as the 50 day EMA has been marching right along it.
Crude Oil Video 31.05.21
Brent markets continue to see a lot of resistance at the $70 level as well, as it is also the top of an ascending triangle. If we can break above, there then I think the Brent market could go much higher and I do expect that to happen sooner or later. I look it dips as potential buying opportunities for the reopening trade and of course the idea of the US dollar falling in general. The 50 day EMA has been crucial as it is walking right along the bottom of the triangle, so I think all things being equal we are going higher given enough time, especially if we continue to see economies around the world open up, which means that we will see more demand for oil.
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