Crude Oil Forecast – Crude Continues to See Basing Pattern

Crude Oil Prices Forecast Video for 07-02-2024

WTI Crude Oil Technical Analysis

You can see that the West Texas Intermediate crude oil market has initially fallen just a bit during the trading session on Tuesday, only to turn around and show signs of life. Again, the market looks as if it is trying to defend the $72.50 basing pattern that we have been in for a while. I do think that oil was oversold at this point, so I have absolutely no qualms about buying it. I think at this point in time you have to look at this as a buy the dip type of market and recognize that although it can be volatile, the reality is that we have sold off so drastically that a little bit of value hunting comes into the picture.

Furthermore, you also have to keep in mind that central banks around the world might be cutting back on interest rates and that spurs economic development. A spurring of economic development, then, in turn, will drive up demand for crude oil. OPEC is starting to lose its sense of humor and will almost certainly do something to cut production and, of course, we have to pay close attention to whether or not the U S will ever go into recession.

It certainly looks as if the economy is still running hot and that of course makes a big difference in the demand for crude oil, especially the WTI grade. The 50-day EMA sits near the $75 level, and that’s my short-term target. But if we can take that out to the upside, the 200-day EMA could be targeted after that, which was right at the last swing high near the $78 level. Underneath, we have massive support at $70, and then again, it’s $68, which is a long-term support level going back several years. So with all that being said, I believe crude oil remains a buy on the dip market.

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