Crude Oil Price Forecast – Crude Oil Continues to See Volatility

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market plunged during the early hours on Friday as we continue to see a lot of negativity. The $80 level underneath, of course, is a large round psychologically significant figure and an area where a lot of people will be interested. If we can turn around and show signs of life, then it’s likely that it will just be a continuation of what we have seen before. If we break down below the $79.50 level, then we could drop down to the $78 level.

On the other hand, if we can turn around and take out the $81 level to the upside, that would be a very strong sign for crude oil. I think traders at this point are trying to sort out whether or not there is going to be demand but cyclically speaking, summer is generally very positive for crude oil.

Brent Crude Oil Technical Analysis

Brent markets have been hammered as well, and it looks like the $83 level underneath is going to be tested. If we can turn around and recapture the $84 level, then I think it’s a very good sign. Keep in mind that both of these markets tend to move simultaneously in the same direction. So, if one drops, the other drops and vice versa.

If we can break to the upside, the $85 level could be a target followed by the $87 level. In general, this is a market that is going to continue to be very noisy and I think we are going to have to watch the market for the next couple of days to see how this plays out, offering another opportunity or are we going to break down significantly?

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