Crude Oil Price Forecast – Crude Oil Continues to See Rangebound Trading

WTI Crude Oil Technical Analysis

Crude oil has been somewhat positive over the course of the trading session, with the West Texas Intermediate Crude Oil Market bouncing from the $80 level. The $80 level of course is a large round psychologically significant figure and an area that previously had caused quite a bit of resistance. In other words, we have a significant amount of market memory here.

With that being said, I think this is a situation where you are looking at a back and forth scenario until we break above the $81.75 level, which could open up a move much higher, perhaps reaching towards the $84 level. In general, this is a market that I don’t have any interest in shorting simply due to the fact that this is a time of year that crude oil demand picks up.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, with the $85.50 level being a bit of a barrier. If we can break above there, then the market could go higher, perhaps as high as the $90 level. Short-term pullbacks at this point could be buying opportunities with the $84 level underneath the offering support.

In general, this is a market that I think is just going to be very noisy as we are trying to sort out where we are going next, but I think the cyclical and the geopolitical concerns will almost certainly have this market going higher, not lower. So I don’t really have any interest in shorting anytime soon. I remain bullish, at least for the next several months, and therefore I think this is a scenario where every time it dips, you have to think about perhaps finding a little bit of value.

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