Crude oil markets choppy on Monday

Crude oil markets initially fell during the session on Monday but found buyers as the Americans came back on board, and the futures markets open. Ultimately, it looks as if we are trying to press the recent resistance, and it’s likely that the market will break out, but maybe not before pulling back to pick up more momentum. · FX Empire

Christopher Lewis

Updated Mon, May 21, 2018, 10:00 PM

WTI Crude Oil

The WTI Crude Oil market initially felt towards the $71.25 level on Monday before finding buyers. By turning around the way it has, it looks as if we are going to go looking towards higher levels, perhaps trying to reach towards the $72.25 level again, and then eventually breaking out to the upside. We are still bullish, but we are in a much gentler slope, which of course is a very bullish sign as it means that the market isn’t overheated. I think the buyers are most certainly in control, so I think that if we can stay above the $70 level, the market is likely to continue to find support.

Brent

Brent markets pulled back a bit during the session on Monday, reaching towards the $70 level before finding buyers and it rally again. If we can break above the $79.10 level, the market is likely to go to the $80 level again. That’s an area that caused a lot of resistance recently, and if we can break above there it’s likely that the market will continue to go much higher. Short-term pullbacks should continue to be buying opportunities, and the gap from several sessions ago that extends down to the $77 level should offer a major support level in the meantime. Ultimately, this is a market that I think will go looking towards the $82.50 level. If we break down below $77, we could go down to the $75 level.