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.