Crude Oil Price Forecast – Crude Oil Markets Testing Trendline

WTI Crude Oil

The West Texas Intermediate Crude Oil market has pulled back a bit during the trading session here on Monday, as traders came back to work from the Easter weekend. We are hanging about the $60 level, so that is something in and of itself and of course we have a major trend line underneath that is offering support. Furthermore, we have the 50 day EMA, which is offering support as well.

All of this is why I believe that if we break down below the $58 level, oil could fall very hard. On the other hand, if we were to turn around a break above the $62 level, then we could see WTI reaching towards the $65 level. The market of course looks like it is still very much in an uptrend, but we need to be very cautious in this general vicinity.

Crude Oil Video 06.04.21

Brent

Brent markets also are sitting on top of a trend line, with the $65 level above offering resistance. If we were to break above the $65 level, then the market could go looking towards the $67.50 level, and then eventually the $70 level. To the downside, if we break down below the 50 day EMA, roughly near the $61.75 level, then I think the market drops to the $60 level, and then eventually down to the $55 level.

All of this is worth paying attention to because OPEC has stated recently that they are looking to increase production going forward, and it is worth noting that the Americans are starting to produce more in the shale fields as well, so if we get a strengthening US dollar, that may all tie in together for a move lower.

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