Crude Oil Price Forecast – Crude Oil Continues to See Range Hold

WTI Crude Oil Technical Analysis

The crude oil market in the WTI grade initially pulled back just a bit during the trading session on Friday, only to turn around and show signs of strength. That being said, we are approaching the $70 level, which is a large round figure and could cause a little bit of a headache. But when you look at the totality of the market, really what we are seeing is the market perfectly comfortable going sideways and doing nothing. And I think that’s probably the story here.

We are just simply killing time in a trading range between $65 on the bottom, and quite frankly, you could even make an argument that the $65 support level extends all the way to the $67.50 level and the $72 level above as massive resistance. If we can break out of this area, then fine, we can follow the market. But right now, it’s a range bound traders back and forth type of scenario and I just don’t see that changing anytime soon.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same. We are bouncing a little bit. We have massive support underneath in the form of the $70 level. We have significant resistance above in the form of the $75 level, but if we can break above there, then we could go looking to the $80 level. I think that oil is trying to bottom, but there’s really no momentum or any fundamental reason to get overly excited.

What oil really needs is growth, it needs economic growth. The United States might provide that and if it does, that will be good for everybody involved and the oil market will rally. But right now, it’s a little early to call for that and I think, again, much like the West Texas Intermediate Market, the Brent Market is one that you’ll be trading back and forth in a tight range.

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