Crude Oil Price Forecast – Crude Oil Continues to Grind

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has bounced slightly during the early hours on Monday, as the $80 level continues to be an area of importance as it is a large round psychologically significant figure and it’s also an area that recently has been pretty significant resistance so a pullback to that area should have a lot of market memory, but a bounce from that area would be a potential buying opportunity. Anyway, at this point in time I think we are in the midst of a breakout. Although it’s going to be very noisy, it could open up the possibility of a move to the $82.50 level above. On the other hand, if we were to break down below the $80 level, it’s the $79 level and then the $78 level offering plenty of support.

Brent Crude Oil Technical Analysis

Over in the Brent market, it looks very much the same. We are still above the $84.50 level, but it looks like we’re using that more or less as a magnet for price. As it was previous resistance, it’s now I think a fulcrum for price. It’s fair value in the short term.

If we can break above the $85.33 level, then I do think the Brent takes off towards the $88 level. Short-term pullbacks continue to offer plenty of value that people will take a look at as a buying opportunity with the $84 level underneath offering plenty of support. In general, this is a market that I think will remain noisy, but I think cyclically speaking, it’s going to be positive over the next couple of months. Therefore, I look at each of these dips that happen as a potential buying opportunity.

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