Crude Oil Price Forecast January 29, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market has exploded to the upside on reasonable volume for Friday trading. We are above the $66 level, and that is a good sign. Ultimately, I think that this market will continue to find plenty of reason to go higher, and if we can clear the $66.50 level, the market should continue the uptrend. I believe that short-term pullbacks are going to be buying opportunities, and that the $65 level underneath should be support. If we break down below $65, I’m not quite ready to start selling, rather I would look for support at lower levels. Ultimately, I believe that we go much higher and make a fresh, new high.

Crude Oil Inventories Video 29.01.18

Brent

Brent markets went sideways overall during the day on Friday, after initially trying to rally. We are starting to see more bullish pressure though, and volume is starting to pick up a little bit. If we can break above the $70.70 level, I think we go to much higher, perhaps reaching towards the $71.25 level next, and then eventually breaking out beyond there. I believe that Brent continues to offer buying opportunities on dips, as the US dollar falls. It puts upward pressure on this market, and we also would see that tension in the Middle East will continue to put pressure on the market. If the US dollar turns around, that could be reason enough for selling to start, but right now I don’t see it happening, at least not in the short term. Longer-term, higher oil prices will eventually attract drilling out of the US again.