WTI Crude Oil Forecast: Continues Upward Momentum

Christopher Lewis

The West Texas Intermediate Crude Oil market has rallied again during the trading session on Thursday as we have broken above the $75 level initially. After that, we did pullback just a bit, but it still looks as if we are ready to go much higher. That makes sense, because OPEC is meeting over the next several sessions, and of course there should be continued demand for crude oil going forward as economies reopen around the world.

At this point in time, I think there is a certain amount of support every time we pull back, especially near the $70 level where the 50 day EMA is starting to race towards. That is an area that I think would be interesting for some type of value play, and with the jobs number coming out on Friday it is possible that we may see a little bit of volatility in the US dollar to make that happen. Nonetheless, I have no interest in shorting and I do think that it is only a matter of time before people would jump back in and start pushing.

To the upside, if we break above the top of the candlestick for the trading session on Thursday, then I think we simply continue to go looking towards the $77.50 level which is where the “measured move” of the ascending triangle project towards, and therefore I think a lot of technical traders are simply hanging on until we get there. For myself, I think we break beyond that given enough time, perhaps reaching towards the $80 level over the longer term. I have even heard some analysts out there suggesting that we are probably going to see $100 per barrel of oil sooner rather than later, but I think that is probably a bit of an overreach at this point.

The real question is how much longer will demand continue to pick up? I think that is very much what is going to drive where we go next, as the simple argument of inflation has been very difficult to come to terms with. In the short term, is no way you can sell this market it is obviously far too bullish and shorting it would be reckless to say the least at this point in time. With this, I look to build on a long position.

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.