Crude Oil Price Forecast – Oil Markets Continue to Respect Bullish Flag

WTI Crude Oil

The West Texas Intermediate Crude Oil market has initially dipped during the trading session on Thursday but has turned around just above the $80 level to show signs of life again. By doing so, it looks like we are respecting the bullish flag, and it is very possible we go looking towards the $85 level. The $85 level is an area that recently has offered resistance, and of course has a certain amount of psychological importance built into it. Because of this, I believe that the market is one that can be bought on a break of the highs of the Thursday session, but not sold off a break down below the bottom, simply because we are in such a strong bullish run.

Crude Oil Video 12.11.21

Brent

Brent markets also pulled back just a bit during the session as well, but also recovered to break above the $83 level. All things being equal, this is a market that looks as if it is going to go looking towards the $85 level as well, as we see so much in the way of upward pressure over the longer term. The 50 day EMA currently sits at the $80.49 level and is rising. Because of this, I think that there are a certain amount of value hunters out there willing to pick up oil, and the demand almost certainly will outstrip the supply in the short term.

If oil were to break down below the $80 level, then we may have a different conversation, lease for the next couple of months. Right now though, it still looks very bullish overall, and I think that buying values the way to go.

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