Crude Oil Price Forecast – Crude Oil Markets Recover After the Initial Drop

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market initially fell during the trading session on Thursday but has found enough support near the 50-Day EMA to turn the market around and show signs of life. Ultimately, this is an area where we will almost certainly see an attempt to reach the top of the triangle. That being said, it is also worth noting that the triangle has held for several months now, and therefore it is going to take some fundamental reason for oil to take off. The $110 level above will continue to be massive resistance from everything I see, so I am not necessarily looking to get aggressive.

Crude Oil Prices Forecast Video 13.05.22

Brent Crude Oil Technical Analysis

Brent markets look similar to the WTI market, as one would expect. The market initially fell to the 50-Day EMA, only to turn around and show signs of life again. By doing so, the market looks as if it is ready to continue fighting the upside. The $110 level in this grade is also resistance, just as it is in the WTI version. Pullbacks continue to offer support, and as long as we can stay above the uptrend line from the triangle, I do not see any reason you would short this market.

Expect plenty of volatility; that has been the profile for oil over the last several months. We are tightening to some crescendo and will eventually get an explosive move in one direction. It is short-term back-and-forth trading at best, but eventually, we should get a bit of clarity that we can take advantage of. Position sizing remains a crucial aspect of your trading.

For a look at all of today’s economic events, check out our economic calendar.