Crude Oil Price Forecast – Crude Oil Continues to Look For a Floor

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market fell a bit during the early hours on Monday, and it looks like we are going to continue to see a lot of noisy behavior. All things being equal, I do think there’s plenty of support underneath, and I don’t really like shorting oil as a rule this time of year, despite the fact that it has been a little bit negative this year at times. I think at this point, we’re waiting for some type of stabilization to take advantage of because summer is almost always very positive for the crude oil market. So right now, I’m just standing back and waiting for an opportunity.

Brent Crude Oil Technical Analysis

The Brent market looks very negative at the moment on the short-term charts, but I do think that the $80 level might be something that you watch. That might be your cue, quite frankly, for both markets as they do tend to follow each other given enough time. So above from there, even if you miss the WTI move, might open up the possibility of buying Brent, and of course, vice versa. Keep in mind that there are a lot of geopolitical concerns out there, and in fact, it’s not going to take much imagination for somebody to blow up yet another oil refinery in the Middle East.

Nonetheless, right now, I think traders are more or less in a risk off type of attitude. So that might be part of what we’ve seen. If you take the pattern of a head and shoulders basically forming recently, we are getting fairly close to the realized measured move. So even if that does play out, it ties in quite nicely with the $80 level being a target. I’m watching that area very closely.

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