Crude Oil Forecast Made 21, 2015, Technical Analysis

Light Sweet Crude

The light sweet crude market gapped higher at the open on Wednesday, and then charged towards the $59 level. We are in the middle of an area that could be rather supportive, so we believe that the market will continue to go higher at this point in time. We also recognize that the $60 level above will more than likely be resistive, as it was once so supportive. At the end of the day though, this market did break out previously and we do not believe that the buyers are quite ready to give up trying to pushes market higher at this point.

Ultimately, we think that short-term pullbacks could be buying opportunities, and believe that the market cannot be sold until we get below the $55 level. Yes, there will be traders stepping back and forth in this market, but ultimately it is much safer to simply wait until we get some type of significant move. Regardless, you have to be able to deal with volatility to be in this market right now.

Brent

The Brent market gapped higher at the open on Wednesday, testing the $65 level. That being the case, the market looks like it’s trying to break out to the upside again, and if we can get above there we feel that the market will ultimately grind its way higher. It is going to be difficult to go much higher, but we also recognize that the breakout recently was of course significant, so we think that it’s only a matter time before we test the $70 level again.

We think the pullbacks on short-term charts should continue to be buying opportunities as well, and with that we are bullish but cautious. You may wish to play this market in the options market, or CFDs if you have that ability in order to cut down on the risk of that will undoubtedly come with this very volatile marketplace. We believe that the markets will continue to find buyers, but it will be very difficult to hang onto the trade.

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