Yahoo Finance Crude oil Price Forecast – crude oil markets try to recover on Friday
WTI Crude Oil
The WTI Crude Oil market rallied significantly during the day on Friday, as perhaps people are starting to look at this as being ginkgo cheap.” I think that short-term pullbacks continue to offer buying opportunities, but I also recognize that the $70 level above is resistance. If we can break above the $70 level, then I think the market can continue to go much higher, perhaps reaching towards the $71.50 level next. Obviously, there are a lot of moving pieces right now and I think that it won’t necessarily be the easiest trade to take to the upside but it looks as if we are trying to catch a bit of a bid on Friday.
Brent
Brent markets broke above the $80 level during the day on Friday, and now look to be trying to hold that level. It’s a nice move, and I think that we will continue to see buyers getting involved. I think Brent may lead the WTI market higher, because quite frankly it’s likely that the markets are a bit oversold at this point, so I like the idea of buying dips. However, if we clear the $79 level, then it’s likely that the market will break down towards the $77.50 level underneath that. There is a lot of volatility in the crude oil markets these days, but these are typically times when it’s best to simply hold your nose and buy the commodity, as things have gotten so out of balance. I would do so with a small position.
This article was originally posted on FX Empire
