Crude Oil Price Forecast – crude oil markets break out

The crude oil markets broke out to the upside and sliced through the significant resistance that we had from both a horizontal and trendline point of view in both markets we cover.
Christopher Lewis
Crude Oil daily chart, January 10, 2019

WTI Crude Oil

The WTI Crude Oil market has broken out to the upside during the trading session on Wednesday, slicing through the $50 handle, and the downtrend line that coincided nicely with it. Because of this, I think that we will eventually continue to go much higher. I think pullbacks will be supported, but I also recognize that the 50 day EMA, pictured in red on the chart, will offer a bit of dynamic resistance as well. Because of this, I believe that the market is probably a “by on the pullbacks” scenario for short-term traders. Ultimately, this is a market that should continue to be very noisy, but I do think that this break out matters.

Crude Oil Price Forecast Video 10.01.19

Brent

Brent markets also broke out to the upside, slicing through a trend line a couple of days ago, and as I record this we are now focusing on the $60 level, an area that of course is psychologically important. If we can break above there, and it certainly looks as if we are going to, I think we will continue to go higher. I believe that pullbacks should continue to offer buying opportunities, especially considering that the 20 day EMA is just below and turning higher. Ultimately, the $65 level above will be resistance but if we can clear that level, the market is probably free to go much higher. Expect a lot of volatility, but at this point I think you will have to be very cautious about shorting the market, as it certainly looks as if it’s ready to go.

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