Crude Oil Price Forecast – Crude Oil Bounces Hard in Early Wednesday Trading

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied rather significantly during the early hours on Wednesday, gaining roughly 3% before we even got going in New York. That of course is a very bullish sign and I think at this point in time, it could create a little bit of a turnaround.

I did say in the last couple of days, we are getting pretty close to massive support. So, the question now is whether or not we can find any momentum. That’s going to be the difficult part. I think you have more of a buy on the dip attitude after this massive move to the upside, but I think you also have to recognize that it’s going to be difficult to get to the $80 level.

Brent Crude Oil Technical Analysis

Brent is the same thing as well. I think $84 is an area where we continue to look at this as an area that’s a magnet for price longer term. Short-term pullbacks should be buying opportunities because quite frankly, Crude Oil got far too sold off. If central banks around the world continue to loosen monetary policy, it should drive up demand for crude oil, it’ll weaken currencies, quite frankly.

A lot of this could come down to the Federal Reserve later in the day, so keep an eye on that. If the US dollar starts to take it on the chin and start losing value, that could send Brent, as well as the WTI crude oil market, much higher. Either way, we’re closer to the bottom than the top, so I still favor the upside, although I recognize volatility is going to be an issue.

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