The crude oil markets continue to rally a bit during the session on Thursday as we have plenty of buyers jumping into the market to go to the upside.
The West Texas Intermediate Crude Oil market has rallied significantly during the trading session on Thursday as we are broken above the $65 level again. That being the case, it looks like we are going to try to get to the highs again, and although we have recently started to form a megaphone pattern, it looks like the market is going to continue to shoot to the upside. I do think that it is probably sooner rather than later that we get a significant pullback, but right now it is too difficult to fight this overall bullish attitude. I think that the $70 level is the next major barrier, right along with that line at the top of the megaphone.
Brent markets rallied as well, as it looks like we are reaching towards the $70 level. If we can break above the $70 level, then the market is likely to go to the highs and then perhaps go looking towards the $75 level. Yes, I recognize that we are in a massive uptrend, but we are starting to see a significant amount of choppiness, and I think we are starting to get a little bit concerned about the massive amounts of speculation in this market. While the markets are trying to price in the “reopening trade”, the reality is that we have made such a huge move that we are sooner or later going to be fully priced in. At this point, we need to find more catalysts, but one thing that we have not had yet is major demand.
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Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.