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Crude Oil continues to show signs of strength during Wednesday session

Crude oil markets rally to get on Wednesday, as we continue to show signs of strength. Part of the reason of course is the concern about tensions in the Middle East, and I think that ultimately, we will find reasons to go higher, at least in the short term.

WTI Crude Oil

The WTI Crude Oil market continues to be very noisy, but with a bullish flavor to it as we have tested the $68 level. The market looks likely to continue to see a lot of bullish pressure underneath, as there are geopolitical concerns in the Middle East that will continue to have oil traders concerned about a disruption of supply. Beyond that, corporate earnings in the United States are good and that suggests that perhaps the economy is going to be strong enough to increase demand for petroleum. However, I think that the $70 level above is going to be very difficult to crack, least in the short term.

Brent

Brent markets also rallied during the day on Wednesday, reaching towards the $73 level. We pull back from there later in the day but are starting to see significant support at the $72.50 level underneath. It looks as if the market is ready to continue to go higher, perhaps reaching towards the $73.50 level, as the market has broken out to a fresh, new high, it’s likely that we would continue to see buyers coming in on dips. Ultimately, I think that the $70 level is a bit of a “floor” in the market over the short term, and I think that we will ultimately see buyers taking advantage of these dips. If we break down below the $70 level, then we would go looking towards the uptrend line on the daily chart.

Crude Oil Price Forecast Video 19.04.18

This article was originally posted on FX Empire

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