Crude Oil Price Forecast – Crude Oil Markets Break Higher

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied pretty significantly during the trading session on Monday as traders came in buying with both hands. It appears that traders are putting the omicron variant behind them, and now they are starting to bet on higher oil prices being a consistent issue. If that is going to be the case, then we have much further to go, probably the $80 level would be the first real target above here.

Pullbacks at this point in time should see plenty of support near the $74 level, as well as the $73.50 level. If we can break above the top of the candlestick, then it would show a continuation that we are ready to continue going much higher.

Crude Oil Video 28.12.21

Brent

Brent markets also shot straight up in the air, slicing through the 50 day EMA like they were not even there. The $80 level is sitting just above and I think it is the next target. Short-term pullbacks towards the 50 day EMA will certainly offer a lot of support, and therefore I think value hunters will continue to flood to this market as omicron variant fears are not concerned about it. The size of the candlestick is relatively bullish as well, so I think that we are more likely than not going to have follow-through so I will be looking for short-term pullbacks that show signs of stabilization that I can take advantage of. The target above I believe is actually going to be a little closer to the $82 level, but really at this point in time it looks like oil traders are willing to move beyond the fears of lockdowns that the markets had priced in so much.

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