Crude Oil Price Forecast – Crude Oil Markets Continue to Show Strength Into the Weekend

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially pulled back during the day on Friday only to turn around and show signs of strength. By doing so, the market looks as if it is threatening the $74 level, opening up the possibility of a move towards the $75 level. Pullbacks at this point in time will still have plenty of support underneath, especially near the $70 level as it is a large, round, psychologically significant figure and an area where the 50 day EMA has just crossed. After the type of recovery that we have seen over the last couple of weeks, it should be obvious that this is still a “buy on the dips” type of market.

Crude Oil Video 02.08.21

Brent

Brent markets also rallied a bit during the trading session on Friday as we have broken above the $75 level in this market. Brent tends to be the leader in these two markets as there is a bit of a premium attached to it, and therefore I think it should not be surprising to see this market break to a fresh new high before the WTI market does. At that point, then I anticipate that the market goes looking towards the $80 level. Underneath, the 50 day EMA sits at the $72.50 level, and should offer a bit of a “soft floor” for the market, and that of course the $70 level will be much more crucial as far as support is concerned. I think this remains a “buy on the dips” type of situation as it has been four months.

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