Crude Oil Price Forecast – Crude Oil Markets Recover Slightly

WTI Crude Oil

The West Texas Intermediate Crude Oil market has rallied a bit during the course of the trading session on Tuesday, reaching towards the gap that kicked off the Monday session. That being said, the market is very likely to continue seeing noisy behavior and perhaps more importantly, selling pressure above. With this being the case, I like the idea of fading signs of exhaustion, but it is very unlikely that it will be a huge move due to the fact that we are at the end of the year. Quite frankly, trading ranges will tighten, as most traders will not even be bothered to put money to work during the holidays.

Crude Oil Video 22.12.21

Brent

Brent markets of course are doing the same thing, trying to fill the gap at $73.52. All things being equal, this is a market that will probably find a significant amount of resistance just above that we can start selling into, and when I am looking for is some type of spike or long wick on the candle to take advantage of. That being said, I do not think that we will see some type of massive meltdown, just that we more likely than not want have the ability to move to the upside. After all, we are starting to price out inflation, as it seems that it is in the process of peaking. Nonetheless, as long as we are at the end of the year, I just do not see how we could take out the resistance above at $76.40, but I do not necessarily think that we are going to slice through the support at $70 either.

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