Crude Oil Price Forecast – Crude oil markets explode higher

Crude oil markets explode higher after the drone attack in Saudi Arabia as one would expect. In fact, we clear the top of a major wedge which shows that we will probably continue to go higher.
Christopher Lewis
Crude Oil daily chart, September 17, 2019

WTI Crude Oil

The West Texas Intermediate Crude Oil market gap higher to kick off the Monday session, as the world reacted to the drone strikes in Saudi Arabia that has wiped out half of Saudi production. That of course is very bullish for the price of oil and has sent a chill through the marketplace. With the market exploding to the upside the way it has, it looks like we are ready to go much higher, with an eye on at least the $65 level.

Crude Oil Video 17.09.19

Brent

Brent markets of course were affected as well, gapping above the 200 day EMA. We reach this high as $70, and then turned around of form a somewhat neutral candle in the middle of the day. Regardless, even if we were to pull back and fill the gap, there is probably going to be a lot of buying pressure underneath given enough time, as we have most certainly seen a lot of bullish pressure. All things being equal it looks likely that we are going to test the $70 level again and is very possible that we could break above there given enough time. All things being equal though, it’s very likely that pullbacks will continue to offer buying opportunities if you are patient enough. That being said, we could even go as high as the $75 level, with that being the case I am a buyer of dips that show any signs of a bounce and think that you can do this multiple times as we try to figure out the supply situation going forward.

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