Crude Oil Price Forecast – Crude oil markets continue to recover

Christopher Lewis
Crude Oil daily chart, June 10, 2019

WTI Crude Oil

The WTI Crude Oil markets gapped higher to kick off the Friday session, pulled back a bit, and then rally again. As we are attempting to break above the $54 level, it’s very likely that we are seeing a recovery in the markets that could lead to a bigger move. After all, the weekly chart has formed a hammer, which of course is a very bullish sign. With that in mind, as we crossed the $55 level it makes a lot of sense that we will go looking towards $57.50, and then eventually the $60 level.

Is this the beginning of some type of major uptrend? I doubt it, but it is most certainly a market that is willing to bounce after being oversold. With that in mind, I believe that the next several days should be bullish on balance, so I’m looking for short-term pullbacks show signs of support and long wicks to take advantage of.

Crude Oil Inventories Video 10.06.19

Brent

Brent markets also gapped higher to kick off the trading session, reaching above the $63 level. Now that we have done that, it makes sense that we would continue to go higher, probably reaching towards the $65 level. I believe that the $65 level of course will cause a certain amount of psychological resistance, but structurally speaking I don’t think it’s going to be that big of a deal. At this point, I believe that Brent will probably go looking towards the $70 level above, which of course will be much more important due to the fact that it is such a large, round, significant figure. Remember, we have recently been hearing a lot about how oil is in a bear market on financial channels, which is almost always the first sign that we are close to the bottom of the market.

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