Oil & Gas - Energy - Commodities - Resources (OILBRENT)

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Crude Oil Markets Continue to Test Triangle
By: Christopher Lewis | May 3, 2021

• The crude oil markets have rallied a bit during the trading session on Monday, to show a continuation of the idea of trying to break out.

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially pulled back a bit during the course of the trading session on Monday, only to show signs of strength again to form a bit of a hammer. At this point time, the $65 level looks to be important from a psychological standpoint, and the fact that we have seen a certain amount of resistance in that area as of late. We have fallen hard from there, so now we need to retest this area to see whether or not crude oil can continue to go higher. The $67.50 level would be the next target, and then possibly the $70 level. The 50 day EMA underneath is an indicator that a lot of people pay close attention to, and it certainly looks as if it is offering dynamic support.

Brent

Brent markets initially pulled back during the trading session on Monday but then turned around to show signs of strength again. It looks as if we have quite a bit of resistance just above, perhaps extending to the $70 level. It is because of this that I think we will grind higher, not shoot higher. The reopening trade continues to push the oil markets higher, and of course the fact that OPEC+ and British Petroleum both expect to see a gain of 6 million barrels per day and demand for the rest the year helps the market as well. Finally, the US dollar continues to fall a bit, that should help the oil market also. If we can break above the $70 level and the Brent grade, should continue to go much higher.

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