Crude Oil Price Forecast – Crude Oil Continues to Look For Buyers

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has drifted a little bit lower in the early hours on Monday as we continue to see a lot of choppy and noisy behavior. In general, this is a market that I think continues to see a lot of questions asked about this area. And if we can turn around, I do think we have a situation where traders will start to really chase oil back to the upside.

There are a lot of concerns right now that perhaps the economy is slowing down globally, and if that’s the case, you have to worry about demand. However, cyclically speaking, crude oil does tend to do fairly well during the summertime. And I think in the longer term, we are still very much in a range. And at this point, we are closer to the bottom than the top. So, I am looking for momentum to the upside that I can start buying in.

Brent Crude Oil Technical Analysis

Brent looks very much the same as the $80 level continues to be a bit of a magnet for price and support. If we can turn around and take out the $81 level to the upside, I think we challenge a couple of minor resistance areas on the way back up to the $84 level. The $84 level of course has been crucial as it was the bottom of a short-term head and shoulders.

We have fulfilled the measured move of that short-term head and shoulders, so a recovery does make a certain amount of sense from a technical analysis standpoint as well. Furthermore, you have to keep in mind there are plenty of things there in the Middle East that could add geopolitical concerns to oil.

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