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Christopher Lewis

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied again during the day on Friday to break towards the $60 level. This of course is a large, round, psychologically significant figure. That being the case, the market of course was attracted to it. Whether or not we can break above there, is a completely different question but given the ferocity of the breakout recently, I suspect that it will happen given enough time. Any pullback at this point will likely turn into a buying opportunity as a lot of people look to get involved in the “FOMO” that the market has seen. With vaccinations rolling out, the theory of course is that economies around the world will continue to see demand pick up for crude oil.

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Crude Oil Video 15.02.21

Brent

Brent markets of course have a similar tone to them and have broken above the $62.50 level. Now that we are broken above there, the market is likely to go looking towards the $65 level, which is the next large, round, psychologically significant figure. Looking at the chart, I think that any pullback closer to the $60 level will be attractive for traders to take advantage of value. I have no interest whatsoever in shorting this market, as I do believe that we go looking towards higher levels, perhaps the $70 level over the longer term. In general, I do believe that we have plenty of momentum still left in the market but given enough time we should eventually come back to reality. Right now, the only thing that you can be looking for is value on dips.

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