Crude Oil Price Forecast – Crude Oil Continues to Find Support

WTI Crude Oil Technical Analysis

You can see that we have rallied rather significantly early during electronic trading, but have given back quite a bit of the gains. This tells me that the market, although bullish, is still going to face a bit of overhead pressure. That’s not a huge surprise. This is a market that has a lot of things to think about, as the supply issue has also been a major problem at times. Remember, the Biden Administration essentially emptied the Strategic Petroleum Reserve, and is now buying it back.

That being said, we have broken above major resistance and therefore I look at this as a situation where you are trying to buy short-term pullbacks to take advantage of value. The 200-day EMA should continue to be the floor here in the West Texas Intermediate. And the upside, I think we are looking at a move towards the $85 level eventually.

Brent Crude Oil Technical Analysis

Brent looks very much the same. We did initially take off to the upside, but we are giving back some of those gains. Again, the 200-day EMA underneath should offer a significant amount of support. And therefore, I think you’ve got a situation where you are buying the dips. Buying the dip gives you an opportunity to take advantage of cheap oil, as it is very likely that Brent is going to go looking to reach the $88.50 level and then possibly even the $90 level.

Both crude oil grades are about to see a golden cross, which is a longer term buy and hold signal. And we are heading into a cyclically important time of year where demand typically picks up due to travel. So with all of that being said, and of course the geopolitical concerns in the Middle East, I think oil is a continued buy on the dip type of market.

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