Crude Oil Price Forecast – Crude Oil Markets Testing Top of Triangle

WTI Crude Oil

The West Texas Intermediate Crude Oil market has been all over the place during the course of the trading session on Tuesday as the markets continue to see upward momentum in general but also see just as much resistance above. At this point in time, the market could go looking towards the $67.50 level, and then possibly the $70 level.

Underneath, we have the uptrend line that is part of the overall ascending triangle, and therefore it should considered to be the “floor the market.” The 50 day EMA underneath is walking right along the uptrend line, so I think that adds even more credence to the idea of a “buy on the dip” mentality in this market.

Crude Oil Video 19.05.21

Brent

Brent markets also did the same thing with the $70 level looking to offer resistance. If we can break above the $70 level, or perhaps even the $71 level, then it allows this market to go looking towards the $75 handle. All things being equal, I like the idea of buying dips and therefore finding value as we go forward. I have no interest whatsoever in trying to short this market, because we continue to see the “reopening trade” come into the picture and therefore I believe that crude oil demand will continue to pick up, at least according to the markets, which at the end of the day is the only thing that matters. If we did break down through the ascending triangle uptrend line and the 50 day EMA, then it is possible we could go down to the $60 level, but I do not see that happening anytime soon.

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