Crude Oil rally significantly during the trading session on Monday

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the trading session on Monday, using the uptrend line from the daily chart as support. The $62 level brought enough buying pressure into the market to rocket higher, gaining 2.5% during the US session. However, I think that there is significant resistance above, so if we can break above the $64 level, I feel that the market will probably struggle to break above the $66 level as it is the next major resistance barrier. Longer-term, I believe that we will continue to go back and forth overall, as the fundamental situation with crude oil continues to be a very fluid situation.

Brent

Brent markets rallied as well, also using the daily trendline for support. It looks as if breaking above the $69 level could be an opportunity to push towards the $70 level. Short-term pullbacks will more than likely common, but if we can stay above the uptrend line on the daily chart, I think that the market will continue to find buyers. Ultimately, if we can break above the $71 level, the market should continue to go much higher, as it would continue a larger uptrend. The alternate scenario of course is that we break down below the uptrend line and reach down towards the $65 level. That’s an area that has been important in the past, so I would anticipate that there should be a certain amount of support in that region.

Crude Oil Video 10.04.18