WTI Crude Oil
The WTI Crude Oil market rallied significantly during the trading session on Friday, breaking above the $60 level before finding significant resistance. This was the scene of a gap lower a while back, so of course that should have plenty of resistance built in. If we can break above the top of the range for the Friday session that would show a resiliency and the market that continues and should push crude oil towards the $65 level. At this point, I think that is a nice target, as well as a nice resistance barrier. That is my target for the longer-term, but in the short term I continue to buy this market every time it dips.
Crude Oil Inventories Video 01.04.19
Brent
Brent markets also tried to break higher during the day but give back most of the gains. Nonetheless, there is a significant amount of support below at the $66 level so I like buying short-term dips in this market as I think we will go looking towards the $70 level eventually. Remember, OPEC has put off its next meeting until at least June, and that will keep production cuts in effect. If that’s going to be the case this is a market that will benefit from that.
I believe that the 50 day EMA, closer to the $66 level should be technically important, so although we couldn’t hang onto the gains on Friday it does look as if a pullback should be a nice buying opportunity for the longer-term trader as well as short-term traders who will be taken advantage of the choppy volatility.
Please let us know what you think in the comments below