Crude Oil Price Forecast – Crude Oil Markets Run Into Resistance

WTI Crude Oil

The West Texas Intermediate markets broke higher during the trading session on Monday but ran into enough resistance at the $65 level to turn things back around to form a bit of a shooting star. That being said, the market is running into some exhaustion. At this point, the Iranians haven’t really retaliated, although they have made a few poignant statements. If tensions continue to escalate, this market will break through the $65.00 level. Otherwise, it’s very likely that the market will probably pull back from here, trying to wipe out the last couple of candlesticks on the daily chart. Either way, I’d be a bit leery about shorting.

Crude Oil Video 07.01.20

Brent

Brent markets gapped higher to kick off the Monday session as well, and even broke above the $70 level at one point. However, it has turned around completely to show signs of exhaustion and form a shooting star like candle. Because of this, the market has shown that the $70 level will still be respected, and therefore a pullback makes quite a bit of sense. The market could pull back towards the $67.00 level, but if we were to turn around a break above the shooting star, then the market is likely to go looking towards the $72.50 level after that. At this point, the markets are simply waiting to see whether or not the Iranians do anything. At this point, we seem to be more or less in a “holding pattern” when it comes to crude and the Iranian reactions.