Crude Oil Price Forecast – Crude Oil Continues to Show Momentum

WTI Crude Oil Technical Analysis

The WTI crude oil market has shown itself to be slightly bullish in the morning on Wednesday, but at this point in time, I think you’ve got a situation where we continue to see more of a buy on the dip attitude. And with that being said, I think we have to assume that the uptrend continues after all the uptrend has been in effect for a couple of months now, and we are heading into a time of year that is typically very bullish.

Demand for crude oil will pick up as people travel via car plane train etc this time of the year for vacation season. Furthermore, from a technical analysis standpoint, we have recently seen the Golden Cross and now the 50 day EMA is all the way down at the $80 level and I think that’s your floor. As we rally from here, I anticipate the crude oil will try to get to the $90 level in the WTI grade.

Brent Crude Oil Technical Analysis

Brent also rallied a bit in the early hours on Wednesday as well. As it looks like we continue to bounce around the $90 level. At this point, if we can continue to see upward pressure, then I think Brent will go looking to the $92 level and then eventually the $95 level. Short-term pullbacks have plenty of support and I think the floor in the uptrend is somewhere closer to the $84.50 level, an area that was significant resistance previously and now features the 50 day EMA.

In general, every time we pull back, I think you will have plenty of buyers stepping in to pick this market up. Ultimately, this is a market that I think given enough time will continue to climb as there are not only stretches of demand, the seasonal effect, but we also have a lack of supply and of course we have all of the geopolitical concerns in the Middle East. So that being said I have no interest in selling crude oil but I do have a lot of interest in buying dips.

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