WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market rallied in the early hours on Friday, as we continue to see a lot of noisy behavior, and the $71.50 level underneath seems to have offered a bit of a floor. If we can break higher from here, then the $75 level could be a significant resistance barrier.

If we break that, then I think we will go much higher, perhaps looking to the $78 level. In general, I think that short-term pull banks continue to offer buying opportunities at these, we also have limited upside. So short-term buying opportunities may present themselves, but I don’t think we’re going to see a massive move higher.

Brent Crude Oil Technical Analysis

The Brent market initially pulled back just a bit as well and then shot higher as we are near the $77.75 level. If we can break above the $78 level, then it’s likely that we could go looking at the $79. I think this sets up a short-term pullback and buying opportunity as we have seen during the day, but I don’t have any interest in shorting this market. I think we are far too low at the moment, and I believe it is probably only a matter of time before we go much higher. In general, this is a market that is very volatile, but if it looks like central banks are going to loosen, that might lift oil prices. Regardless, be cautious with your position size, as we are certainly going to be noisy going forward no matter what direction we go.

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