Crude Oil Price Forecast – Crude Oil Continues to Bounce Around

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market did rally a little bit during the early session on Wednesday, as we are now threatening the $70 level. The market has been consolidating between the $65 level on the bottom and the $72.50 level on the top. That $72.50 level, I believe, is going to continue to be a major ceiling. If we can break above there, then it would be a very bullish sign for West Texas Intermediate. But right now, I have to assume that this is a market that is going to continue to go sideways.

Brent Crude Oil Technical Analysis

Brent looks very much the same, as we are now encroaching the 50 day EMA, which is right around the $74.25 level and if we can break above there, then we could go looking to the $80 level. This is a market, much like the West Texas Intermediate Market that is simply trying to form some type of base at what is typically a two year support level, grabs even longer than that near the $70 level.

Both of these markets are trying to find their bottom of trading that has been defined over the last couple of years as traders are trying to sort out whether or not demand is going to pick up or decrease. Tensions in the Middle East don’t seem to be enough to drive oil higher. So now it’s going to come down to the larger economy such as the United States and China, which has recently not been very bullish for oil, to pick up the slack and start demanding more crude. Until then, I think we’re more or less sideways.

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