Crude Oil Price Forecast – Crude Oil Continues to Struggle

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market pulled back just a bit during the early hours on Friday to test the $69 region yet again. This is a market that continues to struggle, and I suspect it probably has a lot to do with people worried about the overall global economy, and therefore worried about the demand for crude oil. If we rally from here, the $71.50 level is an area that I think could make a short-term target, and of course, a little bit of a barrier. Anything above there has to deal with the 50-day EMA, and then eventually the $75 level after that.

Keep in mind that the $67.50 level underneath has been massive support multiple times, going back at least a couple of years. So, I do think we are closer to the bottom than not. And therefore, I think there are a certain number of value hunters out there willing to get involved.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same, as you would expect, with the $73 level offer and support. And underneath there, we have the $70 level, which is a psychologically important figure, a bottom to the overall consolidation of the last two years or so. If we rally from here, the 50 day EMA comes into the picture right around the $76 level. I think that would be your first target. And it’s probably worth noting that both grades of crude oil have formed hammers three days in a row.

So, Friday could very well end up being the same thing. If that’s the case, that would actually be a potentially bullish sign for this market because it’s not very often you see four hammers in a row. All things being equal though, I do think that the market continues to face massive headwinds regardless, even if we try to rally towards the $80 level, mainly just due to the fact that the global economy seems to be sluggish at best.

Geopolitics of course could come into play and drive oil straight up in the air as it does from time to time. But all things being equal, I think the most important thing to take away here is the fact that we are closer to the bottom than the top of the range.

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