Crude Oil Price Forecast January 16, 2018, Technical Analysis
WTI Crude Oil
The WTI Crude Oil markets have pulled back just a bit, testing the 24-hour exponential moving average. However, we rallied from there and trying to reach towards the $65 level. If we can finally break above there, the market should continue to go much higher, but in the meantime, I think that short-term pullbacks are buying opportunities we can take advantage of. Russia has discussed leaving the production cuts agreement, but I think at this point this is probably more a deal where the US dollar falling is lifting the crude oil markets, as well as growing global economies.
Crude Oil Video 16.01.18
Brent
Brent markets initially tried to rally during the trading session on Monday, but then found the $70 level to be a bit too much. We pulled back a bit, reaching towards the $69.50 level, and the 24 hour exponential moving average. We rallied from there to reach towards the $70 handle again, and I think eventually we will break out above there and continue to go higher. In the meantime, I look at short-term pullbacks as buying opportunities, and that the $69.50 level underneath continues to be a short-term floor, just as the $69 level will be supportive. I have no interest in shorting this market, least not until the US dollar turns around, which is very unlikely to happen anytime soon. Once we break the $70 handle, I think we probably go to the $72.50 level. Expect volatility, but I would also anticipate that it will have a bullish attitude.
This article was originally posted on FX Empire