Crude Oil Price Forecast – crude oil markets continue to show resiliencyThe crude oil markets spent most of the day on Wednesday going sideways, but then broke towards the underlying support level. We snapped back from there, to come back to the region that we had been sideways in for some time.
WTI Crude Oil
The WTI Crude Oil market initially when sideways during most of the day on Wednesday as we have seen for a couple of days now, but broke down rather significantly, reaching down towards the $74.25 level. We bounced significantly from there to reenter the consolidation area again, so I think this shows just how much resiliency there is in this market. This is a clear signal that dips are to be bought, and therefore you should look at pullbacks as a potential value play. This will be especially true if the US dollar loses a bit of strength as well. The Iranian oil sanctions of course are starting to put upward pressure on the market.
Brent markets also fell during the trading session, reaching towards the $84 level, an area that makes sense for support. We bounced from there as well to smash back into the $85 level, and I think that this shows we are most certainly looking to continue to go higher. If we can break above the top of the range for the day, the market should continue to go much higher, perhaps reaching towards the $86 level next. Ultimately, I believe that the market will continue to find reasons to go higher, especially if the Euro can pick up a bit of momentum, driving the value of the US dollar lower. Buying the dips continues to be the best way to play this market, and I suggest that will be the case for the next several weeks.