Crude Oil Price Forecast – Crude Oil Continues to Rally

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market rallied pretty significantly during the early hours on Wednesday as we continue to reach above the $71.50 level in a bid to break out to the upside. Short-term pullbacks I do think are very possible and I do think that it’s likely that short-term pullbacks will probably be bought into. Let’s be honest here, a lot of what is going on right now is a simple reaction to the Middle East and the tensions getting worse, not better. The market has major support near the $67.50 level, but it also has pretty significant support at the $70 level. So, I look at a pullback as a buying opportunity.

Brent Crude Oil Technical Analysis

Brent is very positive as well and in fact, from a technical analysis standpoint, seems to have broken the most recent swing high and therefore it does look a bit more positive. That does make some sense considering that the West Texas Intermediate crude oil is more US centric, obviously, and Brent is going to be more directly influenced by what goes on in the Middle East and that part of the world.

Short-term pullbacks, I believe have plenty of support near the $72.50 level and I think much like the WTI market, we are in the midst of a major recovery. So, I’m looking at dips as opportunities to get involved in what I believe could be a market that has momentum building in it. Whether or not it has sustained energy remains to be seen going forward.

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