Crude Oil Price Forecast – Crude Oil Continues to See Support Despite Previous Selling

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market initially pulled back just a bit during the trading session on Monday, but we have turned around to show signs of life again. By doing so, I think this is a situation where the crude oil market is trying to find its footing and it is worth noting that we had formed three hammers, a negative candlestick and now a positive candlestick.

This looks very much like a bottoming pattern. That doesn’t mean that I would go all in when it comes to the West Texas Intermediate Crude Oil Market. It’s just that it’s a little overdone to the downside. And I think at this juncture, a little bit of a relief rally makes more sense than not. The $67.50 level underneath should be a significant support level, as it has been multiple times in the past, so I’ll be watching that also.

Brent Crude Oil Technical Analysis

In the Brent market, we have the same type of price action. We have three hammers, a negative candlestick, and then a very positive one. If the market can break above the $75 level, that’s probably your signal that we’re going to start bouncing quite significantly.

To the downside, the $72 level seems to be offering quite a bit of support. And then after that, the $70 level offers even more. All things being equal, this is a market that will continue to see buyers jumping to the upside and reaching towards the 50 day EMA, but we need to get past that $75 level first. There are plenty of geopolitical concerns out there, but at the same time, I think the market, for the most part it’s paying attention to the fact that demand might be dropping, which of course is toxic. At the end of the day, though, we are closer to the bottom of the two-year range for both grades of oil than not, so therefore one would have to at least think we lean a little to the upside.

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