Crude Oil Price Forecast – Crude Oil Continues to Build Pressure For a Breakout

WTI Crude Oil Technical Analysis

The crude oil market in the WTI grade rallied rather significantly early during the trading session on Friday, as it looks like we continue to threaten the $80 level. The $80 level, of course, is an area that a lot of people will be paying close attention to because it is a large round figure, but it has become an obvious resistance barrier as well. This is an area that I think a lot of people are waiting for the action to resolve around, and therefore they will pile into the market on its resolution.

Any move above $80 will almost certainly send quite a bit of FOMO trading into this market and a lot of short covering. A lot of people will be running for the hills at that point. It is because of this that I like the idea of buying the breakout, but I also like the idea of buying pullbacks. It’s worth noting that the last three days in a row have seen the 200-day EMA offer support.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as we are trying to break out here as well, although it’s a little dicier when it comes to the idea of exactly where the resistance disappears. The $84.50 level, I believe, continues to be an important area to pay attention to, and if we clear that area, then I think it’s obvious that Brent will go higher, probably reaching $90 rather quickly. The 200-day EMA is in the area right now current pricing and offering support. I like the idea of buying short-term pullbacks in this market as well.

Let’s not forget that there’s an overall picture that we should be paying attention to. One that suggests that the tension in the Middle East will continue to make oil an issue. Furthermore, if central banks around the world are going to continue to cut rates, it’s very likely that oil demand will pick up. And it’s also worth noting that the actual physical supply has been dwindling a bit, so that’s got something to say here as well.

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