Crude Oil Price Forecast – Crude Oil Markets Bounce From Bottom of Triangle

WTI Crude Oil

The West Texas Intermediate Crude Oil market has bounced a bit from the uptrend line that makes up the bottom of the overall ascending triangle that we have been paying close attention to. Ultimately, this ascending triangle suggests that we are going to continue to be bullish, and if we can break above the top of it, it is likely that we go looking towards the $72.50 level. I do think that the reopening trade continues to drive crude oil in general, so with that in mind I believe that buying short-term dips will probably continue to work out, especially as the 50 day EMA looks to be so supportive.

Crude Oil Video 17.05.21

Brent

Brent markets also have bounced from the bottom of a major ascending triangle, which of course most of the market will be aware of. Furthermore, the 50 day EMA and the uptrend line both have held so this suggests that we will eventually make a move towards the $70 level. If we break above there, then it is likely the “measured move” suggests that we are going to go to the $80 level and the Brent market. This makes sense, because the rest of the world continues to look at the weakening US dollar as a catalyst, and of course the idea of the “reopening trade” around the world as the lockdowns are starting to disappear. However, the one thing that people are paying close attention to is the coronavirus figures coming out of India and Brazil, but at the end of the day one would think that it is only a matter of time before markets look beyond that.

For a look at all of today’s economic events, check out our economic calendar.