Crude Oil Price Forecast – Crude Oil Markets Break Out

WTI Crude Oil

The West Texas Intermediate Crude Oil market has clearly leapfrogged the $80 level, and it now looks as if we are going to continue to see upward mobility. That being said, we have given back quite a bit of the gains and therefore we may have to work a little bit to continue the grind higher. I do not necessarily think that this is a market that is going to go parabolic in the short term, rather that we are just simply blowing through quite a bit of stop losses. At this point, I think any dip will be looked at as a potential buying opportunity, in a market that has plenty of fundamental reasons to rally. I believe that the $80 level will be supportive, and I also believe that the $75 level is even more so supportive.

Crude Oil Video 12.10.21

Brent

Brent markets also have rallied a bit to reach towards the $85 level before pulling back somewhat. That being said, we are still very bullish, and it looks like there is a ton of support between here and the $80 level. With that in mind, it is very difficult to get overly bearish of this market anytime soon, and quite frankly I think any pullback will continue to be bought into. The $80 level should be a significant support level, from both a structural and a psychological standpoint. Because of this, I think it is only a matter of time before we get long again. Pulling back from the $85 level also makes a certain amount of sense as there will be options barriers and psychology attached to that level.

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