Crude Oil Price Forecast – Crude Oil Markets Showing Signs of Exhaustion

WTI Crude Oil

The West Texas Intermediate Crude Oil market went back and forth during the trading session on Tuesday, perhaps showing signs of exhaustion after a massive move higher. That being said, even if we do pull back a bit, I have no interest in shorting this market, and I do believe that the pullback will end up being a buying opportunity, especially near the $55 level. That being the case, the market will attract quite a bit of attention in that general vicinity. In general, I think that the market still looks to go towards the $60 level, based upon the entire reflation trade that everybody is currently involved in. This is just a simple matter of a parabolic move that needs to take a breather.

Crude Oil Video 10.02.21

Brent

Brent markets look a little bit more ominous, and if we break down below the $60 level it is likely that we could drop towards the $57.50 level. After that, we could be looking at the $55 level for support. On the other hand, if we were to break above the top of the candlestick then it is likely that we could go even more parabolic, but quite frankly I have no interest in doing so, as the market would probably find itself quite overdone, and that could bring in a lot of massive selling. Instability is not a good look for a market. All things being equal, this is a market that I think probably find plenty of buyers underneath, but we need to let the market come back to earth in order to go to the upside from a longer-term standpoint with a more sustainable rally.

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