Crude Oil Price Forecast – Crude Oil Markets Continue to Rise

WTI Crude Oil

The West Texas Intermediate Crude Oil market has seen a bit of bullish pressure during the trading session on Tuesday again to break above the $53 level. That being said, the market looks as if it is ready to go to the next major resistance barrier in the form of the $55 level. I do believe that the $50 level underneath is going to continue to be supported, so we are essentially in the middle of this overall range. However, I think that given enough time we will continue to see buyers try to break higher based upon the idea of the “reflation trade.” Buy the dips has worked for some time, and I think that will continue to be the case for the time being.

Crude Oil Video 13.01.21

Brent

Brent markets rallied significantly during the trading session on Tuesday as we continue to see money pump into commodities overall. Brent is very likely go looking towards the $60 level, which of course is a large, round, psychologically significant figure. I think in the short term we will get the occasional pullback, but the reality is that a lot of traders will look at these pullbacks as potential buying opportunities, as this market has been so strong for so long. With this being the case, I think that the $50 level underneath will be essentially the “floor the market”, and therefore should continue to attract a lot of attention. Furthermore, the 50 day EMA is sitting just below there, and tilting higher. With that being the case, I think that it is not until we break significantly below the $50 level that I would be concerned.

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