Crude Oil Price Forecast – Crude Looks Ready For a Short Term Bounce

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market fell pretty significantly in the early hours on Monday, but it does sit just above a major support zone which extends all the way down to the $65 level. So, I think the downside is somewhat limited. If we bounce, the $70 level could offer a little bit of resistance right along with the 50 day EMA at roughly $71.50.

And then the $72.50 level has been important multiple times. So, I think that is also worth paying attention to. As things stand right now, this looks like a market that could bounce a bit, but it is going to more or less be a market for short-term trading.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as we rallied in the early hours, but we were closer to the support to begin with in the form of $70. At this point in time, if we do rally, the 50-day EMA is more likely than not going to attract a certain amount of attention near the $74.50 level and then again, the 200 day EMA and the $80 level above there could cause resistance.

I don’t necessarily think that oil is going to break down from here, but if it does, it could be a really ugly turn of events due to the fact that both grades of oil are sitting on top of support that have lasted for about two years. So, it would obviously signal some type of shift in the market. Nonetheless, I think any move at this point in time is probably going to more or less be a short-term type of situation.

For a look at all of today’s economic events, check out our economic calendar.