Crude Oil Price Forecast – Crude Oil Continues to See Buyers

WTI Crude Oil Technical Analysis

As you can see, the crude oil market pulled back just a bit during the trading session on Wednesday only to turn around and show signs of life again. All things being equal, this is a market that I think continues to see a lot of upward pressure and it’s also worth taking a look at the $80 level, a large round figure that a lot of people will pay attention to. If we can break above the $80 level, then the market is free to go much higher. And at this point in time, it’s very unlikely that we will continue to see plenty of support underneath, especially near the 50-day EMA.

Ultimately, this is a market that is forming a bit of a rounded bottom, which of course is a major signal for a reversal. Keep in mind as we head into summer demand will pick up and of course a lot of people are going to be looking at central banks around the world loosening monetary policy which should drive up energy.

Brent Crude Oil Technical Analysis

Brent looks very much the same and as you can see, we initially fell and then turned around to show signs of life. The 200-day EMA of course is an area where a lot of people will be paying attention to. At this juncture, I think $84 is your ceiling. Breaking above that opens up the possibility of the $87.50 level. The 50-day EMA underneath continues to be relevant and the $80 level is also important.

And much like the WTI market, we are seeing a bit of a rounded bottom. Again, I think with a lot of economic juicing out there by central banks, it’s probably only a matter of time before we break out to the upside and go looking to possibly even $90. This would drive both markets higher, as they tend to chase each other. With this, I am looking for a breakout in the next month or so, but between now and then, it will be noisy.

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