Crude Oil Price Forecast – Crude Oil Markets Pull Back

WTI Crude Oil

The West Texas Intermediate Crude Oil market gapped lower to kick off the trading session on Thursday, only to turn around and show signs of life again. By doing so, the market looks likely to continue seeing a little bit of a pullback, but I do think that the $70 level will probably cause a bit of psychological support, and most certainly the $67.50 level will as the top of the triangle sits right at that level. That being said, I would anticipate a lot of “market memory” coming into play here. Furthermore, I also believe that it is only a matter of time before value hunters come back into this market, because quite frankly demand is going to continue picking up.

Crude Oil Video 18.06.21

Brent

Brent markets also got absolutely crushed during the trading session, but at the end of the day we still have plenty of support underneath that should come into play. Quite frankly, this is a complete overreaction by algorithmic traders more than anything else, and despite the fact that it has been rather brutal, the reality is that the market freaks out about once a month these days, so I am going to take a guess and say this is our time for the latest freak out. The $70 level underneath should be massive support, and that assumes that we can even get there. The demand for crude oil is going to continue to pick up regardless of what the Federal Reserve does, so it is probably only a matter of time before value hunters come back in and pick this market up. Simply standing out of the way is probably the best way to trade this market.

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