Crude Oil Forecast Today 06/06: Pressures The Upside (Chart)

(MENAFN- Daily Forex)

• During trading on Thursday, we saw the Light Sweet Crude / West Texas Intermediate Crude Oil market rally a bit, as we continue to see a significant amount of upward pressure.
• That being said, the market also faces a major barrier just above, near the $65 level that people will be watching closely.
• If we can break above that level, then it opens up a new potential move to the upside.

Accumulation?

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I think at this point in time we could start to ask the question is whether or not we are actually in the middle of accumulation. This is because we have been going sideways for a while, but it's also worth noting that the volume is starting to pick up. This is classic“Dow Theory”, and the so-called“accumulation phase.” I find this interesting, because there are a lot of other markets that suggest that perhaps the economy is not quite dead, and of course the crude oil markets are very sensitive to how the overall economy is behaving.

For example, copper looks perky all of sudden, and of course natural gas just simply won't lay down. In other words, somebody out there with money believes that the economy is going to do better than most people are betting on, and of course crude oil will be a major component in how things get around the world. While OPEC continues to flood the market will supply, markets continue to go sideways. This is a very strong sign, without actually driving higher prices.

At lower levels, the $60 level is a major support level, and as long as we can stay above there, I think this remains a“buy on the dip” market. If we can break above the $65 level, the first target I would have would be the crucial 200 Day EMA, near the $69 level. Anything above there opens up the possibility of an even bigger swing trade to the $72.50 level. That being said, keep in mind the Friday is Non-Farm Payroll in the United States and could bring in a lot of volatility.

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