Crude Oil Price Forecast – Crude Oil Markets Looking to Break Out

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session during the trading session on Monday but then turned around to fill the gap only to rocket to the upside. The resistance line of the top of the ascending triangle should send this market higher if we can clear it, opening up the possibility of a move towards the $70 level. The $70 level course is a large, round, psychologically significant figure and therefore I think a lot of pressure will show up there. If we can break above there, then it is likely that we could go looking towards the $72.50 level.

Crude Oil Video 18.05.21

Brent

Brent markets have also rallied after initially gapping higher, as the $70 level offers a significant amount of resistance, and not only from a structural standpoint, but also a psychological standpoint. All things being equal, the market could go looking towards the $75 level but there could be a lot of noise between now and then. The uptrend line from the ascending triangle should continue to be supportive, right along with the 50 day EMA which is at the same place.

At this point in time, the market is likely to see a lot of noise, but the attitude of the market is still bullish due to the reopening trade in the idea of the global sense as the market will continue to look at the idea of the reopening trade driving demand for crude oil much higher, thereby pushing prices in the same direction.

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