Crude Oil Price Forecast – Crude Oil Markets Find Buyers Underneath

WTI Crude Oil

The West Texas Intermediate Crude Oil market initially fell during the course of the trading session on Wednesday, only to turn around and form a very bullish candlestick. There was a build of crude oil according to the inventory numbers coming out of America, which of course was a very negative for the market. That being said, buyers returned to turn things right back around and reach above the $62 level. The candlestick does look very bullish, and therefore I think we will get a bit of a recovery going forward. To the upside, the $65 level is a barrier that I think will be very difficult to get above.

Crude Oil Video 22.04.21

Brent

Brent markets initially fell during the session as well, dropping down towards the $65 level before turning around to form a bullish candlestick. At this point, the market is likely to go looking towards the $60 level initially, possibly even to the $70 level. At this point in time, the market is likely to continue to try to break to the upside, perhaps based upon the idea of the recovery rally more than anything else. I have no interest in shorting this market, at least not until we break down below the 50 day EMA. Because of this, I think that there will be plenty of buyers underneath and therefore it is only a matter of time before we at least make a push towards the $70 level. If the US dollar continues to fall, then that could also help the crude oil markets rally from a simple currency devaluation standpoint.

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