Crude Oil Price Forecast – Crude Oil Continues to See Support

WTI Crude Oil Technical Analysis

The Light Sweet Crude or West Texas Intermediate crude oil market has stabilized overnight as we are hanging around the crucial 200 day EMA. Ultimately, I do think this is a market that’s ready to bounce given enough time, and the central banks around the world cutting rates could very well drive out demand for oil.

Even if we were to break down from here, the market sees the $72.50 level underneath as a major support level, and therefore this is a market that I’m looking to buy dips given a chance. I have no interest in shorting crude oil, at least not right now and I do think that we could bounce all the way to the $78.50 level given enough time.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as it is sitting on top of the 200-day EMA as well and it is forming a somewhat neutral candlestick. If the market can break above the last couple of candlesticks, it could go looking to the $82 level, which is an area that a lot of people have seen as a major barrier.

If we were to break down below the bottom of the candlesticks for the trading session, then we could be looking at a move down to the $75 level, which of course is a large round psychologically significant figure in an area where we have seen a lot of action previously. All things being equal, this is a market that is definitely looking very much like a scenario where traders will have to pay close attention, but I think it still favors the upside overall, so therefore I am bullish.

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