Crude Oil Price Forecast January 24, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market initially dipped during the trading session on Tuesday but found enough support near the $63.75 level to rally again. The market is choppy, but I think it is attracted to the $65 level above, which has been resistance in the past. It’s a large, round, psychologically significant number, and it’s likely that the typical attraction to the round number will influence the market as oil markets are extraordinarily technical. If we can break above the $65 level, the market is free to go much higher. In the meantime, I suspect that short-term pullbacks are buying opportunities for those who are nimble enough to take advantage of them. A breakdown below the $63 level would be negative though.

Oil Forecast Video 24.01.18

Brent

Brent markets initially pulled back during the trading session on Tuesday, testing the $69 level for support. We found enough there to send the market higher, reaching towards the $70 level. $70 has a gap just above it that could cause a significant amount of resistance as well, so I think that the market will struggle and that short-term pullbacks will continue to be seen. Those pullbacks should be buying opportunities though, and once we break above the $70.25 level, the market could go much higher. At that point I would anticipate that the market will probably go looking towards the $72.50 level, and then possibly the $75 level after that. Ultimately, expect a lot of volatility but I think the upward pressure remains.