Crude Oil Price Forecast – Crude Oil Markets Reverse Early GainsCrude oil got a boost higher on Monday as there were reports of an attack on a Saudi Arabia and pipeline, but it looks like there was no real damage.
WTI Crude Oil
The West Texas Intermediate Crude Oil market initially rallied a bit during the trading session, to reach towards the $67.50 level, only to turn around and reach towards the $65 level. The $65 level could be support, but at this point it certainly looks as if the market at the very least is going to go sideways, if not pull back into the megaphone pattern that I have marked on the chart. At this point, if we break above the top of this candlestick for the session on Monday, then it opens up the door to the $70 level. On the other hand, if we break down below the $65 level, we could see this market drop two the $62.50 level rather quickly.
Crude Oil Video 09.03.21
Brent markets initially rally during the trading session on Monday but gave back the gains to crash below the $70 level. The $68.50 level is where the market had fallen to, but at this point it is likely that we could go down to the $67.50 level, then possibly to the $65 level. At this point, the market does look a little bit extended but obviously we are in a very bullish market. If we were to turn around a break down below the $62.50 level then I think we could be seen a much needed significant pullback, but until then I would look at supported as opportunities to buy short-term rallies. I have no interest in shorting this market, at least not yet although I recognize that the $70 level is pretty significant resistance.
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