Crude Oil Price forecast for the week of January 29, 2018, Technical Analysis

WTI Crude Oil

The WTI Crude Oil market rallied during the week, breaking above the $66 level at one point. I think that it’s only a matter of time before we continue to go higher, perhaps reaching towards the next psychologically significant level, the $70 handle. The markets continue to be very bullish, so I think pullbacks offer value, with the $60 level being a “hard floor” in the longer-term trend from what I can see. There is a nice uptrend line that we are following, and with the 20 SMA being underneath, it’s likely that we will continue to see bullish pressure.

WTI Video 29.01.18

Brent

Brent markets have rallied as well, breaking above the $70 handle, suggesting that we are going to continue to go even higher, as it has cleared a major level of resistance from 2015. I think that the markets continue to offer plenty of opportunity at lower levels but breaking above the $70 level is in fact a very strong sign. If the US dollar continues to suffer overall, that should continue to be yet another catalyst for crude oil to go higher. Ultimately, there will eventually be significant dollar pressure due to US drillers coming back into the market with these high valuations. The other potential problem is the US dollar gaining strength, as it would also put downward pressure in this market. Until then, we go higher.