Crude Oil Price Forecast – Crude Oil Continues to Bounce Around in a Range

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied slightly during the early hours on Wednesday, but at this point in time we are just simply continuing to consolidate back and forth. The $80 level underneath is of course a large round psychologically significant figure, which is also an area that previously has been resistance.

And with that being the case, the market memory will come into the picture and create quite a bit of a floor. On the other hand, if we can break above the $81.60 level, then the market could go much higher. I think at that point, it would make quite a bit of sense if the WTI market went looking to the $83 level. In general, this is a very choppy situation. And I think most traders are just looking at dips as buying opportunities in the WTI grade.

Brent Crude Oil Technical Analysis

The Brent market continues to see a lot of noisy behavior right around the $84.50 level. At this point in time, the market continues to look at that as a magnet for price as we have been bouncing around for some time. The $85.50 level is a minor resistance bearer, and if we can break above there, then we can continue to go much higher, perhaps reaching the $87.50 level. That is an area that’s previously been important, so we have seen that more than once.

Underneath the $84 level is support and $84 of course I think is an area that will continue to be defended. Remember that this time of year is typically cyclical positive for crude oil due to demand picking up with travel. So, I think all of this ties together quite nicely for eventually breaking higher.

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