Crude Oil Price Forecast – Crude Oil Continues to Search For a Bottom

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied just a bit during the early hours on Wednesday as we continue to see a lot of volatility. That being said, we are in a consolidation range that, quite frankly, is an area that I think a lot of traders are asking questions of, as to whether or not the $65 level will end up offering a floor. The $65 level has been a bit of support for the last couple of years. And as long as it holds, then not much changes.

If we were to break down below $65 that would obviously be very negative and could send West Texas Intermediate Crude Oil plunging. On the upside we have the 50 day EMA sitting right around the $72 level and then after that we have the 200 day EMA hanging around the $75 level. I think that’s probably about as far to the upside as we go in the foreseeable future as there are just so many questions out there.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same with the $70 level underneath is the floor and the 50-day EMA at the $75 level attracting a lot of attention. I think that might be where we try to get to initially but breaking above there then it opens up the possibility of a move to the 200-day EMA which is sitting just below the $80 level.

This is a market that tends to move in $10 increments anyway, so it’s not a huge surprise for me to see the $70 level as the bottom and the $80 level as the top. Again, just as with the WTI grade of crude oil, if we break down below the $70 level, then it could see a significant plunge. Either way, I think crude oil is just hanging out, trying to sort out where the economic demand is going next.

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