Crude oil rallies again during hectic trading

The crude oil market continues to be bullish, although we had a lot of confusion during the session on Tuesday in reaction to conflicting reports about the United States either staying or tearing up the nuclear agreement with the Iranians. Because of this, it presented a value play the traders took full advantage of over the last 24 hours. · FX Empire

Christopher Lewis

Updated Wed, May 9, 2018, 10:06 PM

WTI Crude Oil

The WTI Crude Oil market rallied rather significantly over the last 24 hours and looks likely to continue to go much higher. The $71 level of course has of course offered a bit of resistance, but at the end of the day I think we are going to continue to go much higher. I believe the $72.50 level above is the target. I expect to see a massive amount of support down to at least the $69.50 level, and I think that strength in the oil market continues to be a fact of life. I have no interest in shorting in the meantime, but if we were to break down below the $67 level that would change everything.

Brent

Brent markets rallied significantly during the day also, reaching towards the $77.50 level. This is an area that I had targeted previously, and now I think we may get a short-term pullback, but I also think it offers plenty of value that people will take advantage of. The $75 level has previously been resistance, and it should now be support. I believe that buyers will come in and pick up this market on these pullbacks as it represents value. If we get a turnaround in the US dollar, that could send this market even higher. I believe that breaking the $77.50 level to the upside would be an extraordinarily bullish sign and could send this market to the $80 level which is my longer-term target. However, I recognize that pullbacks may be necessary in the meantime.