Crude Oil Price Forecast – Crude Oil Continues to See Pressures

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has continued to drift lower during the early hours on Tuesday, but we are testing the $75 level, an area that I think will offer a little bit of interest for traders. We are also getting fairly close to the bottom of a massive symmetrical triangle from several months back and therefore I think we could be getting close to a bounce, but we’ll just have to wait and see if we can get any momentum. I wouldn’t necessarily want to short this market but I also not wanting to jump in with a huge position. We continue to see the price action reflect the idea that the global economy is in fact slowing down.

Brent Crude Oil Technical Analysis

Brent markets look very much the same. We’re at the bottom of a massive triangle from the higher timeframes. We’ll have to wait and see how that plays out. But as things stand right now, it certainly looks like a market that could bounce. We just have to wait and see. It’s hanging around the $78.50 region, an area that has been minor noise in the past. And if we can recapture the $79 level, we could see a bit of a recovery trade here.

That being said, energy markets in general look pretty anemic at the moment. And that I think comes down to the idea that the global economy is in fact going to continue to slow down. If that’s going to be the case, oil is going to have issues. It is cyclically a very bullish time of year, but the summer travel season will be ending in a couple of weeks, so we’ll have to see how that plays out.

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