Crude Oil Price Forecast – Crude Oil Continues to See Noisy Trading

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market has shown itself to be somewhat lively in the early hours as we initially pulled back, only to show signs of life again. The question now of course is going to be whether or not we have enough momentum to push the West Texas crude oil market above the $71.50 level. That is an area that I believe will continue to be important and I think it’s probably only a matter of time before we see buyers trying to recapture that.

If and when they do, then you have a scenario where traders will perhaps go looking to the 50-day EMA and then after that the $75 level. Underneath we have the $67.50 level as an area that a lot of people will be watching very closely. Through the prism of whether or not they can find some type of support and value. Anything below there would be rather ugly.

Brent Crude Oil Technical Analysis

The Brent market looks very similar as it’s hanging around the $74 level and bouncing early in the session. Ultimately, we’ve got a scenario where I do think eventually this is a market that will find its way back towards the 50-day EMA, but it might be a bit noisy in the short term.

That doesn’t really matter much though because quite frankly, this is a scenario that we are getting fairly close to a major support level on longer term charts, especially the closer you get to $70. So, I think we are more likely than not to find some type of value hunting in this area. Although I don’t necessarily think that oil is going to fare well in the longer term. I think we’re more or less consolidating.

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