Crude Oil Price Forecast – Crude Oil Continues to See Support

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied just a bit during the early hours on Monday, bouncing from the 50% Fibonacci retracement level. At this point in time, the market continues to see a lot of noisy behavior as we are between the 50-day EMA and the 50% Fibonacci retracement level with the 200-day EMA in the middle.

I think at this point in time, we are more likely than not to continue to see consolidation and perhaps a bounce. If we turn around and break above the 50-day EMA, and perhaps even more importantly, the $80 level, it’s likely that the market could go much higher. On the other hand, if we break down below the hammer from last week, it’s possible that the market drops down to the 61.8% Fibonacci retracement level.

Brent Crude Oil Technical Analysis

The Brent market looks very similar, and I think at this point in time, the $84.50 level is your major barrier. We have also bounced from the 50% Fibonacci retracement level here, and therefore, I think you’ve got a situation where we probably build up enough pressure to go higher, but it might be noisy in the meantime. With that being the case, I’m bullish, but I’m also cautious.

I’d say optimistic is probably a better word than bullish. As to higher prices, quite frankly, there’s plenty of geopolitical concerns in the Middle East. That’s not going anywhere, and this time of year is typically bullish for crude oil. There have been some scares about central banks keeping policy tight, namely America, and of course the economy slowing down, but at the end of the day, this is a market that will bounce given enough time, and once it does, it could break quite a bit higher.

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