WTI Crude Oil
The WTI Crude Oil market rallied during the trading session on Wednesday, reaching towards the $65 level above. That’s an area that has a certain amount of psychological resistance to it, but I think eventually we will break out to the upside, and what should be a very noisy move. Pullbacks should offer value, at least for the short-term traders, but longer-term there are a lot of concerns when it comes to the oil markets, because quite frankly these higher prices will attract American drillers. The markets are likely to see pullbacks as short-term value, unless of course we were to break down below the $63 level, which of course would show significant weakness.
Crude Oil Price Forecast Video 25.01.18
Brent
Brent markets were very noisy during the day, as we bounced around the $70 level. It’s a large, round, psychologically significant number, so of course it attracts a lot of attention. If we can break out above the highs of the day, extensively the $70.50 level, the market should continue to go much higher. I think short-term pullback should be buying opportunities, with the $69.50 level offering an excellent opportunity for a bounce. Even if we break down below there, it’s likely that the market will find even more support near the $69 level. With this type of noise, it’s likely that we will continue to see a lot of short-term trading, but eventually if we break out to the upside, I believe that we will then go to the $72.50 handle, followed very quickly by the $75 level.
