Crude Oil Price Forecast – crude oil continues to press resistance

WTI Crude Oil

The WTI Crude Oil market has shown a proclivity to go higher during the trading session on Friday, as we press the vital $55 level. That’s an area that of course attract a lot of attention but we are also in the process of building an inverse head and shoulders, which could measure for a move to the $66 area. This isn’t going to happen overnight, but it certainly looks as if oil has found its bottom and I think if we can get above the $55 level, I think we will see a significant bullish run. If we pull back to the 20 day EMA, we may find buyers there as well, pictured in green on the chart.

Crude Oil Video 22.01.19

Brent

Brent markets also are rallying towards major resistance, in the form of the $63.50 level, and then the $65 level. I do believe that we will eventually go higher, and that once we break the $65 handle, we will have completely broken through a major “inverse head and shoulders”, which of course is a very bullish sign. At that point, I anticipate that we will probably see a run towards $75, possibly even $80 given enough time based upon the measurement of the move. If we pull back, then I think the 20 day EMA, again pictured in green on the chart, will offer dynamic support. I do believe that we are breaking out eventually as we have bottomed so hard off of a large, round, psychologically significant figure.