Crude Oil Price Forecast – Crude Continues to Look For Momentum

WTI Crude Oil Technical Analysis

Taking a look at the crude oil markets you can see that we have been dancing around the 200 day EMA for the last several sessions and of course, Tuesday wasn’t any different. That being said, the market is likely to continue to see buyers on dips, which does make a certain amount of sense considering that WTI has found so much support at the 50 day EMA and has of course been trying to reach towards the $80 level and break above it for several weeks now.

I think this time of year is a major influence as cyclical trade is most certainly in effect where we get more travel via car and plane. And, of course, we have supply concerns, which is an even bigger issue. So, on this, I like buying dips.

Brent Crude Oil Technical Analysis

Brent is very much in the same situation as the 50 day EMA offered support during the previous session. We do see a lot of resistance above, especially near the $84.50 level, but we are trying to do everything we can to pressure the market to the upside. If we do break down from here, I think the $80 level offers support, but if we can take off to the upside, then it becomes more or less an intermediate buy and hold situation.

I do think that both of these markets eventually hit $90 this summer, especially considering that the Federal Reserve and other major central banks around the world are going to be cutting rates and that should increase economic activity so it all ties together for high oil prices. I don’t have any interest in shorting and I look at every pullback as a potential value play to take advantage of. However, always make sure to be cautious with your position sizing, and that of course will continue to be a major concern with traders looking to get involved in this market, as the volatility will certainly pick up going forward.

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