Crude Oil Price Forecast – Crude Oil Continues to See Volatility

WTI Crude Oil Technical Analysis

You can see we continue to bounce around a bit as we try to sort out where we are going longer term. Either way, I do think this is a market that more likely than not will continue to see buyers on dips. And that’s how I treat it. The WTI market has a major barrier above the $80 level, which of course, is a large, round figure and an area that we’ve seen action at previously. So, it would obviously attract a lot of attention if we broke above there.

Underneath, we own the 200 day EMA and try everything you can to offer support. And if we were to break down below there, then the 50 day EMA comes into the picture as well for support. I have no interest in shorting WTI because I think we are about to see a big breakout.

Brent Crude Oil Technical Analysis

Brent is very much in the same situation as we hang around the 200 day EMA. The $84.50 level above is a significant barrier that if we can break above there then we can go much higher.

If we break down below here, then the 50 day EMA comes into the picture where we could see a lot of support as well. Again, this is a buy on the dip type of scenario. And I do think that you have to look at this through the prism of trying to find value. Supplies are somewhat tight and that, of course, will continue to drive oil higher if central banks start to loosen monetary policies that could drive up demand through economic expansion.

And then, of course, we have the cyclical time of year when more crude oil is demanded anyway. So all of this comes together quite nicely for a buy on the dip market, which I continue to buy on the dip. Again, I have no interest in shorting crude oil, and I do think that if we can break above the barrier just above in both of these grades, these markets could really start to take off.

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