Crude Oil Weekly Price Forecast – Crude Oil Markets Threatening Breakout

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied significantly during the course of the trading week to threaten the $67 level. Just above here, at the $67.50 level, it would signify a breakout and I think it is only a matter of time before we go looking towards the $70 level, possibly even the $72.50 level. It is worth noting that we closed towards the top of the week and therefore it suggests that it will be a bit of follow-through. If that is going to be the case, then I think dips continue to be bought into as a lot of people are banking on the reopening trade and of course the demand for crude oil picking up.

WTI Oil Video 31.05.21

Brent

Brent markets also are threatening the top of the triangle, which signifies that we could go as high as $80 but we need to get a daily close above the $70 level first. Once we do break above there at think there will be a lot of money coming into the market. At that point, I think that we would see a rush of momentum and therefore think it would be rather quickly. To the downside, there is the uptrend line that comes into the picture, so I think you need to look at that as potential support as well. If we break down below that uptrend line, we could go looking towards the $60 level but that is not my base case scenario. At that point I would expect to see a lot of support as it is a large, round, psychologically significant figure.

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