Crude oil markets pulled back during the day on Friday to find support underneath that major levels, based upon the Fibonacci retracement tool. Because of this, it looks as if we are going to see a bit of a bounce from here, and if we do I think it’s likely that we will eventually see traders picking the energy market back up.
The WTI Crude Oil
The WTI Crude Oil market has rallied significantly during the trading session on Thursday after initially falling down to the 61.8% Fibonacci retracement level, or the $68.60 level. Overall, it looks as if we are trying to form a bit of a hammer on the daily chart, which of course is a very bullish sign. If that’s the case, then I think what we will see is a break above the $70 handle. On that move, it’s very likely that traders will come back into the marketplace and try to pick up crude oil based upon it being cheap.
Brent
Brent markets also fell during the trading session but found support at the 50% Fibonacci retracement level, that is obviously a very bullish sign and I think the buyers are willing to get involved. If we can break above the $80 handle, I think the market might go to the $81 level, and then possibly the $82.50 level. If we turn around and break down below the bottom of the candle stick for the trading session on Thursday, then I think the next target will be the 61.8% Fibonacci retracement level near the $77 handle underneath. Overall, I think the tensions are frowned Saudi Arabia and the Iranian sanctions will eventually bring buyers back into the fold.
