WTI Crude Oil Forecast: Breakout Puts $100 in Focus

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied a bit during the early part of the trading session here on Wednesday, as we are now above the $95 level. At this point, it’s possible that we could continue to see momentum to the upside. The $100 level is the next large, round, psychologically significant figure.

The recent move has been strong. Of course, as we continue to see attacks on oil rigs, oil tankers, and infrastructure between the Americans and the Iranians, we now have problems potentially rising with supply. Nonetheless, this is not a huge surprise to technical traders that have been watching this ascending triangle. We are in the midst of breaking out of it. That’s not a good sign. That could show that we have much further to go if the measured move is to be believed.

The Brent Market Looks Very Much the Same

We are now above the $100 level, and it looks like the $110 level is our next major swing high. The measured move from the ascending triangle, unfortunately, is much higher than that. It actually measures a move to $130. This would be a very destructive move for many other markets.

While I don’t necessarily think that’s where we’re going, one thing that is somewhat obvious on this chart is that the buyers continue to push to the upside. As long as there are attacks on oil infrastructure and tankers, as well as just hostilities in general, oil prices will continue to see a lot of upward pressure as supply constraints enter the psyche yet again.

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