Crude Oil Price Forecast – Crude Oil Balances After Initial Selloff

Crude Oil Prices Forecast Video for 16-02-2024

WTI Crude Oil Technical Analysis

Crude oil has initially fallen during the session on Thursday only to turn around and show signs of life. It’s interesting that the WTI crude oil market continues to respect the 50-day EMA and perhaps, more importantly, the $75 level. The question now is going to be whether or not we are starting to see more buy on the dip behavior because that has been the case over the last couple of months, although it’s been very volatile.

Crude oil has a lot of things working for and against it at the same time. So that does make for a very messy market. If we can rally and take out the 200 day EMA above, I believe that the West Texas Intermediate crude oil market will go looking to the psychologically important $80 level above. Anything above there confirms an inverted head and shoulders and we probably get quite a bit more in the way of FOMO trading.

Brent Crude Oil Technical Analysis

Brent looks very much the same, reaching down toward the $80 level before turning around and bouncing from not only $80 but the 50 day EMA as well. Keep in mind Brent will tend to follow US oil or vice versa, so they should move in tandem. This is also a market that looks like it’s trying to form an inverted head and shoulder, so that is something worth paying attention to.

If we can take out the 200-day EMA above, then it’s likely that we can look into the $85 level. And anything above that $85 level at this point, I think would become buy and hold. Keep in mind that crude oil is paying close attention to central bank behavior because there are questions as to whether or not central banks will have to loosen later this year, and it certainly looks as if they will. And that should spur economic development.

On the other hand, we also have to pay attention to supply and demand, and supply has been dwindling. We also have geopolitical concerns in the Middle East, so that comes into the picture as well. All of this lines up for what I think will be bullish oil markets, although maybe not explosive markets, just more of a grind higher.

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