Crude Oil Price Forecast – Crude Oil Continues to See Basing

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market stabilized a bit during the early hours on Tuesday, and at this point in time, it does look like we are trying to do everything we can to turn things back around. Ultimately, this is a market that is hanging around the $81 region and it looks like it is trying to rally. But at this point in time, I think what would be the true rush into the market is if we can break above the $82 level. If we break down from here, we still have to deal with the $80 level, which I think would offer a lot of support.

So do keep that in mind. Ultimately, crude oil is typically very stagnant but bullish this time of year as the demand for travel picks up. But we also have to worry about geopolitical issues. So that also could drive a quiet rally, if you will.

Brent Crude Oil Technical Analysis

Brent markets are very much the same there, hanging around the psychologically important $85 level, an area that will continue to attract attension. With this, I think you’ve got a situation where traders continue to look at this through the prism of whether or not it is offering value, and it’s probably worth noting that the $85 level has previously been resistance.

So, I do think we have a situation where a certain amount of market memory comes into play. If we can rally above the $85.50 level, I think at that point we may make a move towards the $87.33 level below. We have a lot of support extending all the way down to the $84 level. So, I’m not really interested in shorting Brent. And I do think that value hunters are going to come into the market here and start to take advantage of cheap contracts for oil.

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