Crude Oil Price Forecast – Crude Oil Continues to Perhaps Build Inertia

WTI/CL Technical Analysis

The light sweet crude oil market has shown itself to be bullish as we continue to hang around the $65 level. The $65 level also is backed up by the 50-day EMA, and it is the area that we previously had seen a lot of resistance. We had a massive move higher after the Israel airstrikes in Iran, but once the peace was signed and agreed to, oil markets collapsed. What I find interesting, though, is that we are hanging around this same area of previous resistance, and it seems like the market is getting comfortable. We have a lot of wicks to the upside. So, if we can break above the highest one, which is basically $66.50, then I think oil goes higher, probably more of a grind.

Brent Technical Analysis

Brent looks very much the same, although we have the 50 day EMA above and the $68 level offering resistance. So, in this case, I’d like to see Brent break above $69. If we can do that, then the 200 day EMA gets targeted at $71.20. Short-term pullbacks are possible and quite frankly, we could just continue to stumble here. But I think we’ve got a situation where seasonality favors higher prices. And I do think that the market is trying to do everything it can to build up confidence to go to the upside. Because of this, I’m not really looking to short the market, but I think really at this point in time, we’re more or less in a wait and see type of situation after that wild move. I think most participants are a bit exhausted.

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