Crude Oil Price Forecast – Crude Oil Markets Break Above Triangle

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gapped higher to kick off the trading session on Wednesday, pulled back a bit to fill that gap, and then turned around to show signs of strength. Ultimately, this is a market that is trying to go higher, and therefore I think what we are looking at is a potential move towards the $70 level given enough time. All things been equal, I think that the market is likely to be to see the uptrend line from the previous triangle and the 50 day EMA. All things been equal, this remains a “buy on the dips” type of scenario as the world trade to the “reopening trade.”

Crude Oil Video 06.05.21

Brent

Brent markets have gapped higher to kick off the trading session as well, reaching towards the $70 level before pulling back a bit and then bouncing again. If we can get a daily close above the $70 level, then it is likely that we go much higher. If we break above there, then we are looking at a potential move to the $75 level. All things been equal, it is very difficult to imagine a scenario where I would be a seller, so with that being the case I am simply looking at this as a “long only” trade, but I also recognize that with the jobs number coming out on Friday it is very likely that we will continue to see a lot of choppy action between now and then. Regardless, I see no scenario in which I would be a seller as we are so strong in general.

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