Will Crude Oil Continue the Bullish Trend?

Crude oil prices settled lower on Friday after the U.S rig count rose for the first time since December, renewing worries of a supply glut after an output freeze proposal helped boost the market to 2016 highs and multi-week gain.

The Chicago Mercantile Exchange (CME Group) as of late discharged an exceptionally intriguing report on the relationship between Crude Oil and the share trading system. This report expresses that the S&P 500 is as of now 70% related with the WTI (West Texas Intermediate) prospects contract so far this year.

Official Energy Statistics from the U.S. Government (EIA): Crude oil storage at record levels pressuring prices, “Crude oil and petroleum product inventories, both domestically and internationally, have been growing since mid-2014 and are above five-year averages for this date,” the EIA report said.                  U.S. crude oil inventories are above 500 million barrels for the first time.

So what is the next step?

After the pattern archived:

the bullish trend, for the coming trading sessions, pointing that the prices creating a possible bullish pattern that its confirmation wti level situated at 39-40 $, from looking on the charts we can see also the resistance at 42-43 area the next contract is going to replace the one we see now in the 21th APR 2016 will replace by MAY 2016.

This pattern also suggests some corrections after reaching the target. Breaking down 36.20 followed by 35.10 levels will send the crude oil to cope with $33-$34.