Crude Oil Price Forecast – Crude Oil Continues to Rally

WTI Crude Oil Technical Analysis

The WTI crude oil market has been all over the place early during the trading session on Friday, which of course makes quite a bit of sense. And that was the employment announcement in the United States early in the day that everybody was watching.

That being said, I think one of the things that you truly need to pay the most attention to will be the fact that the $80 level above is an area that I think a lot of people continue to watch closely as it is a large, round figure and an area that obviously has offered quite a bit of resistance.

With that being said, I like the idea of buying short term pullbacks going forward. If we were to break down below the 200 day EMA, then it opens up a move down to the 50 day EMA, which I also believe will end up being very supported.

Brent Crude Oil Technical Analysis

Brent market traders continue to see a lot of back and forth action as well. But much like their counterparts in the WTI market, the 200 day EMA underneath continues to offer a lot of support. The $84.50 level above is a significant resistance and if we can break above there, then it’s likely that we could go higher, perhaps reaching the $90 level. Short term pullbacks continue to be moves that people are willing to buy into.

And I do think that eventually both grades of crude oil take off due to the fact that we are heading into the time of year when demand starts to pick up and supply is already weak. Furthermore, we have a lot of geopolitical tensions in the Red Sea as well as the Middle East overall. So that will continue to put a little bit of a floor underneath oil to begin with.

Central banks around the world cutting interest rates will also have a lot to do with why oil might rally due to the fact that people will be expecting more energy demand as cheap money spurs a lot of investment. With this, I’m bullish and I have no interest in shorting.

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