Crude Oil Price Forecast – Oil Continues to Drift

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market fell a bit during the early hours on Tuesday, as traders begin to price in the idea of world peace. I guess the geopolitical situation has not gotten better in the Middle East. And with that being the case, there is a huge gap between pricing and geopolitical premium.

I do think that this will end up being a nice buying opportunity eventually, but the key here is to see a little bit of momentum. At the very least, you would want to see the WTI market break above the 200 day EMA and preferably above the $80 level. In the short term, we could visit the market lows back in the month of February, which could be even as low as $75.

But I have a hard time believing that oil will fall further than that. In the meantime, I’m looking for signs of a bounce or again, a move above the $80 level in order to get involved.

Brent Crude Oil Technical Analysis

Brent markets are very much in the same situation. They are digging into this area of noise between January and March, which should produce a lot of support.

If we turn around and take out the 200 day EMA to the upside, it opens up the possibility of a move to the $84.50 level. If we can clear that, then I think you will get a lot more FOMO trading in this market and perhaps open up the possibility of moving much higher. I have no interest in shorting this market, and I do think about it.

As low as we can get in, the Brent market will be near the $80 level. That being said, I do expect a lot of noise. You cannot get heavily levered in either of the grades of oil because quite frankly, market volatility is going to get worse, not better.

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