Potential signal: crude oil will eventually break out to the upside and therefore I’m waiting to see the WTI break above the $80 level on a daily close. As soon as it does, I will get long of this market in aim for at least $82.50, with a stoploss at the $79 level.
WTI Crude Oil(Click on image to enlarge)As you can see, the WTI crude oil market has somewhat retreated during Monday’s electronic . Let’s wait and see how this develops, as has provided some support. However, there does appear to be a lot of selling pressure over the $80 mark. I do think that the $80 level offers up a move to the $82.50 level, maybe even the $85 level, if we can break above it. I believe we are beginning to see crude oil start to show its strength. at this point in time continue to find a buying opportunity all the way down to at least the 50-day EMA, probably even lower than that in general. Brent(Click on image to enlarge)Brent finds himself in a similar predicament. If we can break over the $83.50 level, which I think will serve as a , we might be able to move up to the $87.50 level or perhaps $90. I believe that you are a buyer of dips overall. Moreover, the 50-day EMA is positioned exactly around the $80 mark. This obviously will capture the attention of a lot of different traders.Furthermore, a lot of people are obviously aware of the 50-day EMA. Remember that there is a scenario in which it appears that would ease monetary policy, which many traders believe will spark economic growth. And in that event, there will be a greater need for crude oil. Additionally, this market exhibits seasonality as the driving and travel seasons begin. somewhat of a . Though it’s a messy one, I believe a lot of people are also focusing on it. Having said that, I believe it will only be a matter of time until we start fighting for the upside.More By This Author:AUD/USD Forecast: Aussie Continues To Look For DirectionBitcoin Forecast: Continues To See Upward PressuresCrude Oil Forecast: Continues To Look Volatile
