Crude Oil rallies on Tuesday

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Updated: Apr 11, 2018, 05:04 UTC

Crude oil market shot higher during the day on Tuesday as it seems to be reacting to the calming voice of the Chinese. There has been a lot of concerns when it comes to a trade war between the US and China, and of course riskier assets such as the crude oil market have suffered. However, Tuesday was a completely different situation as the Chinese have seemed to take a more moderated approach.

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the trading session on Tuesday, slicing through the $65 level. It looks as if we’re going to go looking towards the $66 level above, which was the recent highs. If we can break above there, then I think that this rally extends quite nicely. I suspect that we could get a short-term pullback between now and then though, and a lot of this will be due to the situation between the Americans and Chinese cooling-off a bit early during the day. Pullbacks should bring buying opportunities if we can stay above the $64 level.

Brent

Brent markets also rallied, breaking above the $70 handle. This was an area that I had suggested was resistance extending to the $71 level, so if we did break above the $71 level, the market is likely to go much higher. At that point, I would anticipate a move to the $75 level over the longer term. There is still an uptrend line on the daily chart that has been respected, so it’s not until we break down below that uptrend line that I would be a seller. Pullback should find plenty of support not only at the $70 level, but also with the $69 level beneath there. Pay attention to the US dollar, if it continues to fall that should continue to lift oil.

Oil Forecast Video 11.04.18

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.