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

[DiscoverGold]

Crude Oil Continues to See Support
By: Christopher Lewis | May 10, 2024

• The oil market has seen a bit of buying this past week, after initially falling a bit. A this point, I suspect there is a lot of buying pressure underneath current levels.

WTI Crude Oil Weekly Technical Analysis

The West Texas Intermediate crude oil market initially started falling during the week but then turned around to show signs of strength. It looks as if we are threatening the $80 level which of course is a large round psychologically significant figure. It’s probably also worth noting that the 50% Fibonacci retracement level has offered support and therefore technical traders will be paying close attention.

If we can break above the $80 level, then I suspect that we will get more money flowing into the market, and this does make sense considering this time of year is typically a big travel season time. If we break above the $80 level, then it could very well send this market looking to the $82.50 level. Short-term pullbacks should more likely than not end up being buying opportunities.

Brent Crude Oil Weekly Technical Analysis

Brent has done the same thing and initially peaked just below the 50% Fibonacci retracement level only to turn around and rally towards the $84.50 level. If we can break above that, then we could go look into the $87.50 level and then eventually $90 above. Keep in mind that markets are not pricing in anything along the lines of a geopolitical risk and that is something that is a major influence on what could happen.

Perhaps some of the value traders and investors have stepped in and recognized that. Maybe that’s what this last week has been about. I do favor the upside. I don’t necessarily think we’re going to have a massive spike higher, but I do think that we will go higher from here. That being said, it doesn’t mean we go straight up in the air, just that we have a lot of reasons to continue to the upside.

Read Full Story »»»

DiscoverGold