Crude Oil Price Forecast – Crude Oil Continues to Build Pressure

WTI Crude Oil Technical Analysis

The WTI crude oil market has done very little during the early hours on Tuesday after rallying on Monday. Ultimately, this is a market that I think continues to see a lot of upward trajectory and given enough time, I do think that buyers jump into this market on each dip in order to go looking towards the $85 level.

The $80 level underneath is going to be a massive support level as previously had been resistance. The 50 day EMA is breaking above the 200 day EMA showing signs of life via a golden cross. So, we’ll have to wait and see how that plays out. Ultimately, this is a market that I do think goes looking to the $85 level, but we may have some work to do between now and then.

Brent Crude Oil Technical Analysis

Brent looks very much the same as we stalled a bit during the early hours on Tuesday, but quite frankly, the $84.50 level underneath will continue to be support. The $87.25 level above is short-term resistance, but I think it’s minor, to say the least, and it’s probably only a matter of time before we go looking to the $90 level above. Keep in mind that geopolitical tensions continue to put upward pressure on crude oil, but we also have the cyclical trade where there is more demand this time of year as people tend to travel more.

So, with all of that, I do think crude oil goes higher and therefore I have no interest in shorting. Short-term pullbacks continue to be buying opportunities. These are situations where people are simply trying to play out the momentum of the cycle, which happens most years.

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