Crude Oil Price Forecast – Crude Oil Continues to Look Bullish

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied slightly during the trading session on Thursday in the early hours, but it still looks very much like a market that is trying to sort things out and perhaps break above some perceived resistance. Keep in mind that the $80 level underneath should continue to offer support and the 50-day EMA breaking above the 200-day EMA a couple of days ago, the so-called golden cross, will attract a certain number of traders as well. There are plenty of reasons to think that oil will go higher, but the technical analysis by itself suggests that we are in the midst of a bullish flag that will eventually break to the upside and allow WTI to go to $85 a barrel.

Brent Crude Oil Technical Analysis

In the Brent market, it looks very much the same as you would expect, with the $84.50 level offering support. If we can break above the $86.50 level, then we will break above the top of the bullish flag that we are currently in, and it opens up a move to the $90. Much like the WTI market, we have also had the Golden Cross recently, so it all ties together for a very bullish market in general. Crude oil itself is going to continue to see upward pressure due to the cyclical trade.

After all, a lot more travel gets done this time of year, and therefore demand picks up. Furthermore, we have a lot of geopolitical concerns and tension that could disrupt supply in the market. With all of that being said, I do think crude oil goes higher over the next several months, and in the case of Brent, probably reaches $90 a barrel.

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