Crude Oil Price Forecast – Crude Oil Continues to Build Pressure

WTI Crude Oil Technical Analysis

As you can see, the crude oil market has gone back and forth during the early hours as we are trying to sort out where the market is going to go longer term. That being said, I do think this is a situation here in the WTI grade of crude oil where we are going to continue to keep an eye on the $80 level.

If we can break the $80 level to the upside, then that will kick off quite a bit of momentum to the upside. All things being equal, you could make an argument for a little bit of a complex inverted head and shoulders here, which of course, is also a bullish sign. In the meantime, I think anytime we get a little bit of a pullback to the 50 day EMA, then it’s possible that buyers would come in based on the idea of value hunting.

I don’t have any interest in shorting oil, though I do recognize that we may have some work to do. Brent is very much in the same situation. We are sitting just below the 200-day EMA and threatening to move even higher.

Brent Crude Oil Technical Analysis

Brent, much like WTI, is going to continue to look at the world through the prism of whether or not central bank easing is going to take place and if it does, will it drive the demand for crude oil higher? At this juncture, I do think that a lot of people are banking on that, but I also recognize that there are a lot of concerns when it comes to economic outcomes around the world. There are concerns in the Middle East, there are concerns about supply because supply is starting to tighten in the physical market.

So, all of that being said, I do think that there is quite a bit of upward momentum just waiting to happen, but right now, we are just building up a little bit of inertia before our next move, and therefore you have to be somewhat cautious.

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