Crude Oil Price Forecast – Crude oil markets trying to break out

Christopher Lewis
Crude Oil daily chart, March 21, 2019

The WTI Crude Oil

The WTI Crude Oil market rallied again during the trading session on Wednesday, as the inventory number was extraordinarily bullish. Because of this, we shot above the $60 level, an area that of course has a certain amount of psychological appeal. With that being the case, you can expect a lot of noise, but we may have just made a major break out. By the end of the day we should note, quite frankly if we can close above $60 at the end of the session, that could be an extraordinarily bullish sign. However, if we do roll over and break down below the $60 level, it could be a somewhat negative sign in the sense that we are quite ready to break out yet. Longer-term though, it does look as if we are trying to go higher anyway.

Crude Oil Price Forecast Video 21.03.19

Brent

Brent markets initially pulled back to the 200 day EMA but then shot higher in response to that inventory figure, and now it looks as if we are trying to break towards the $70 level. It isn’t necessarily going to be the easiest thing in the world to do, but clearly it looks as if the path of least resistance is to higher levels. Pullbacks should continue to offer buying opportunities, but the $70 level above will cause a certain amount of psychological issues. If the Federal Reserve seems like it is ready to be soft with its monetary policy, it’s likely that commodities will continue to show signs of resiliency, including crude oil. To the downside, the $67.50 level should offer plenty of support, and I believe that we are entering a “by on the dips” situation in both grades of oil.

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