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Crude Oil Price Forecast – crude oil market breaking resistance

Christopher Lewis

WTI Crude Oil

The WTI Crude Oil market rallied significantly during the Friday session, breaking above the neckline of a potential inverted head and shoulders. Overall, I think that the market probably does eventually break out even if we do pull back from here. At the very least, I think there is massive support underneath at the $53.50 level. Overall, I like the idea of going long on pullbacks to give us a bit of value to take advantage of, because quite frankly this is an area that’s going to cause a lot of volatility. However, Saudi Arabia stepping out and suggesting that they aren’t going to keep up production levels could press this market higher.

Crude Oil Inventories Video 18.02.19

Brent

Brent markets rallied as well, showing extreme bullish pressure. The market will more than likely run into pullbacks occasionally, and at that it’s likely that we will find buyers underneath as we have broken through a neckline for the “inverted head and shoulders” that I have been talking about. The 200 day EMA just above could cause some issues, but quite frankly I think at this point it’s obvious that crude oil is going to continue to go higher. If the US dollar can fall, that should also help oil markets go higher.

The one concern of course is that global growth is slowing down, and that could bring down demand. At this point, it’s essentially a supply/demand question. Overall, I do like the idea of buying though and the Friday candle is very encouraging to say the least.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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