Crude Oil Price Forecast – Crude Continues to See Noisy Yet Positive Momentum

WTI Crude Oil Technical Analysis

You can see the crude oil market has been slightly positive in the early hours in the West Texas Intermediate grade. But right now, it looks like the $84 to the $85 level is going to be an area that is difficult to overcome.

That doesn’t mean that we can’t, and it doesn’t mean that we won’t. It just means that it is going to be a bit of a headache. Ultimately, I think this is a situation where you continue to look at short term pullbacks as potential buying opportunities because of all of the geopolitical issues if nothing else. Ultimately, I do think this is a market that will break out to the upside due to the seasonally of it more than anything else, but I also recognize that underneath we have the $80 level as a hard floor, right along with the 50 day EMA.

Brent Crude Oil Technical Analysis

Brent markets look very much the same. They have run right into the previous trading block, and it looks to me like we are going to try to get to the $90 level. It’s not necessarily going to be easy, but it certainly looks as if we could get there on the occasional pullback and refilling of long positions.

Brent has a major support level in the form of the 50 day EMA and of course the $84.50 level. So, all things being equal, I think you’ve got a situation where you have to look at this through the prism of something that looks pretty decent but may have a little bit of overhang here to deal with. Again, geopolitical concerns I don’t think are being properly priced into the market, and perhaps the odd headline may set the oil market on fire. With this, I like buying dips, I have no interest in shorting oil anytime soon.

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