Crude Forecast – Oil Continues to Find Support Just Below

WTI Crude Oil Technical Analysis

The West Texas Intermediate market bounced ever so slightly during the early hours on Monday as the $80 level continues to be of importance. Furthermore, we need to pay close attention to the moving averages underneath, forming the so-called golden cross as the 50-day EMA gets ready to break above the 200-day EMA. In general, this is a market that I do like, and I think cyclically speaking, it’s a good trade to have on. After all, demand does pick up this time of year, and of course, we have a lot of geopolitical concerns. Breaking above that $80 level was crucial for attitude as well. So, I think we’ve got a shot of this market truly taking off to the upside. I like buying pullbacks, and I think $85 is your next target.

Brent Crude Oil Technical Analysis

Brent markets look very similar, with $84.50 being the support underneath. If we can break out to the upside, the $90 level will be the target, and I think we could get there over the course of the next couple of months. I don’t necessarily think that the market is going to shoot straight up in the air, but I do recognize that we have a scenario where the market is very bullish overall, and now we are doing that pullback to a breakout kind of thing that a lot of markets will do.

I look for short-term drops to pick up, and I have no interest whatsoever in shorting this market. All things considered, I believe this is a market that should continue to go higher over the next several months, and I plan on being involved to the upside in both grades of oil.

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