Crude Oil Price Forecast – Crude Oil Continues to Struggle

WTI Oil Technical Analysis

The light sweet crude oil market is slightly positive in the early hours here on Thursday, but really, at this point in time, it’s the same story. We continue to struggle with the downtrend line. And that, of course, is backed up by the 50-day EMA and the $60 level. At this point, anytime that we rally, I think you have to look at that with suspicion and perhaps even think about shorting again. We are kind of compressing here.

So I don’t know how much longer this lasts. We’ll just have to wait and see. If we can break above the 50-day EMA, that could open up an attempt to get to the $62 level. But right now, it just doesn’t seem like it has a whole lot of momentum. And if that’s the case, I don’t really want to be bothered with it. A lot of sideways, back-and-forth short-term day trading is probably possible here with an emphasis on the downside.

Brent Technical Analysis

Brent markets, of course, look very much the same as they have rallied a little bit in the early hours. But you can also see that we are very much in a downtrending range, and it looks like market participants are going to continue to see this as a market that I think is going to struggle with the massive amount of oversupply, as US, Russian, and OPEC producers are just flooding the market.

With that being said, I think you have to assume that every time we rally, you’re shorting this market. It’s not until we break above the $65 level that I think the attitude changes.

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