Crude Oil Price Forecast – Crude Oil Continues Megaphone Pattern

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially tried to break above the $65 level during the trading session on Tuesday but gave back the gains to show signs of exhaustion again. We are currently in the midst of a big megaphone pattern, so I do think that we will more than likely continue to see a lot of volatility which makes sense, considering that oil has shot straight up in the air and is now testing a major supply area. With that being the case, I do not like the idea of trying to get too cute with this market, but I do believe that eventually we will see some type of bigger decision made. Because of this, I do not want to have to pick up a position that I am very cognizant of the fact that we are struggling to break out to the upside now.

Crude Oil Video 10.03.21

Brent

Brent also looks a bit cautious, as we have formed a negative candlestick yet again, and of course the $70 level looms large. I believe this point crude could be trying to tell us something but noting that the recent spike in price is relatively unsustainable. Furthermore, at these high levels one would have to think that shale would come into the picture sooner rather than later, and thereby flood the market with supply again. All things been equal, I do believe that we probably make a move towards the bottom of the megaphone pattern in both of these markets, if for no other reason than to catch our collective breath in a market that has done a lot of work as of late.

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