WTI Crude Oil
The WTI Crude Oil market bounced from the uptrend line of the symmetrical triangle that we have been forming just above the $50 level on Tuesday. That’s a good sign, and quite frankly something that had to happen. What catches my attention even more is that the downtrend line is tested by several wicks on the daily candle’s, and if we can break above the downtrend line, then I think we go to the $55 level, perhaps even the $57.50 level. This is a market that is using $50 is a major barrier, so if we were to break down below that level, things could get ugly and unwind to $45 rather quickly.
Oil Forecast Video 12.12.18
Brent
Brent markets rallied during the trading session on Tuesday, using the $60 level as significant support. The uptrend line that I have marked on the chart is important, and although we don’t have the same type of triangle that we have in the WTI grade, I think this shows that the proclivity is to go to the upside. If we do break down below the uptrend line though, we could see this market unwind to the $55 level. A break above the $64 level would be a very bullish sign, and a signal that we are going to start recovering again. Ultimately, both of these markets will move in the same direction so pay attention to both grades, as one can very well lead the other.