Crude Oil Price Forecast – Crude Oil Continues to See Noise

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market pulled back just a bit during the course of the trading session in the early hours of Monday, but it is in the midst of trying to recover. It’s probably worth noting that we have been noisy over the last couple of weeks and that noise probably continues. There are a lot of different things going on at the same time. That of course will continue to move the market. So you have to keep your position size reasonable.

After all, geopolitics in the Middle East alone can make crude oil very volatile, but we also have to ask questions of the global economy. As central banks around the world cutting rates should stimulate, but at the same time, it could signal that they see real problems ahead. Underneath, I see the $71.50 level as a major support level with the $75 level above as a major resistance barrier. We are currently right between the two.

Brent Crude Oil Technical Analysis

Brent markets look very much the same and at this point, I’m watching the $76 level underneath as potential massive support, just as the $80 level above is significant resistance. We did kick off the week with a gap lower. So that might be worth paying attention to as gaps do tend to get filled in the futures markets, but it’s a little early to call for that flat out.

I do think ultimately, we probably grind a little bit higher, but I think it’s also going to be a very noisy and sluggish move. So, I’m not really willing to put a ton of money into the market right away. If we break down below the $74 level, that would be a bad sign for not only Brent, but probably all grades of crude oil.

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