Crude Oil Price Forecast – crude oil slightly positive in sin trading

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Updated: Sep 4, 2018, 05:36 GMT+00:00

Crude oil markets rallied slightly during the trading session on Monday, as Americans were away for Labor Day. Overall, the market looks as if it is trying to rally from here, and I think that longer-term there may be reason to think that this market could go higher due to the concerns about the Iranian supply coming off-line.

Crude Oil daily chart, September 04, 2018

WTI Crude Oil

The WTI Crude Oil market rallied slightly during the trading session on Monday, but keep in mind that the Americans were away for Labor Day and this of course has a major effect on liquidity. The $69.50 level has offered support a couple of times now, so I think that in the short term, that should be thought of as a buying area. At this point though, it looks like we are trying to break above the $70 level, an area that should continue to be important for traders to pay attention to. I do believe in the overall grind higher, but short-term pullbacks should continue to be thought of as potential buying opportunities. I would expect a lot of erratic behavior out of this market though, as there are headwinds in the form of a stronger US dollar.

Brent

Brent markets rallied during the trading session on Monday as well, reaching towards the $70 level. If we can break above that level, the market should continue to go higher, perhaps reaching towards the $80 level next. Short-term pullbacks continue to be buying opportunities, with the $77 level offering significant support. We are in and uptrend, and the fact that Brent can rally right along with the US dollar is rather impressive. I think the $80 level is far too important for people to ignore, as it is such a large come around, psychologically significant target.

About the Author

Christopher Lewisauthor

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.