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Crude Oil Price Forecast – Crude Oil Markets Continue to Show Bullish Pressure

By:
Christopher Lewis
Published: Jan 5, 2022, 15:46 UTC

Crude oil markets rallied again during the course of the trading session on Wednesday as we continue to see crude oil be bid higher, despite the fact that OPEC is releasing more.

Crude Oil Price Forecast – Crude Oil Markets Continue to Show Bullish Pressure

In this article:

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit during the course of the trading session on Wednesday as we have broken above the $70 level. By doing so, it looks as if the market is going to try to take out that nasty red candle from a couple of weeks ago, and then go looking towards the $80 level after that. Any move above $80 will of course send this market looking towards $85 level above.

Pullbacks at this point in time should continue to find buyers underneath at the 50 day EMA, which sits just below the $75 level. Ultimately, this is a market that I think continues to see upward pressure but perhaps in a noisy manner.

Crude Oil Video 06.01.22

Brent

Brent markets have also rallied to break above the $81 level, and therefore show signs of strength yet again. We are on the verge of taking out the big “wipeout candle” from a couple of weeks ago, but ultimately, I think that we go looking towards $85 level, and then possibly beyond that. I have no interest in shorting crude oil, because quite frankly it shows signs of strength again, and of course it looks like we are breaking out of a bullish flag which measures for a move to the recent highs. Ultimately, this is a market that I think continues to find plenty of buyers, especially if the US dollar takes a bit of a hit as the contract of course is priced in those greenbacks. Regardless, it looks as if the oil cannot be shorted anytime soon.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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