Crude Oil Price Forecast – Crude Oil Continues to See Support

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market has pulled back ever so slightly during the trading session after initially trying to rally on Thursday, but quite frankly, it’s looking a lot like a market that is doing everything it can to find some type of support right around the $70 region.

If we do break down from here, the $67.50 level comes into the picture as support as well. Alternatively, if we turn on a break to the upside, clearing the $71.50 level would be the next major hurdle. I suspect that there are value hunters in this general vicinity, but I don’t necessarily believe that crude oil is suddenly going to spike or skyrocket, barring some type of geopolitical noise.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as we are dancing around the $72 to the $74 region, looking for support. Ultimately, if we can break above the $75 level, then I suspect that the Brent market could rally, although the 50-day EMA is sitting just above and that might cause a little bit of noise.

That being said, Brent, much like the WTI market, is fairly close to the bottom of the two-year range, and therefore I think that’s part of what’s going on. These are technical bounces. Above, if we truly broke out, the 200-day EMA sits right at the psychologically important $80 level, so that’s something worth paying attention to as well. Expect a lot of noisy behavior, but ultimately, I think the downside in this market is probably somewhat limited at the moment.

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