Crude Oil Price Forecast – Crude Oil Drops Early on Tuesday

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market broke down early during the session, but it now looks like it is trying to recapture the $80 level. If it can do that, it would be a very strong sign as it would show a repudiation of selling pressure. Keep in mind this time of year is very typically bullish for crude oil, and retail sales just came out hotter than anticipated in the United States, so that might push up oil demand for transportation, manufacturing work in general, that type of thing.

Furthermore, we have been in an uptrend for a while. And this pullback, although a little bit deeper than I thought it would be, is still very much in the range of normalcy. That’s why I look at the $80 level as being important because it’s a large, round, psychologically significant figure. If we do break down from here, we could see the market drop down to the $78.50 level, but we’ll have to wait and see.

Brent Crude Oil Technical Analysis

Brent looks very much the same, it is pressuring the $83 level as I record this video, and quite frankly, it is perhaps a little bit more bearish than WTI, but that makes a certain amount of sense as Brent has more international exposure and it seems like America is still doing everything it can to keep the bubble afloat.

So, with that being said, I do think that a recapturing of $84 in the Brent market, or $80 in the WTI market, signals that oil is ready to recover. I’m not really too keen on shorting the oil. I’m not saying that it can’t break down. I’m just saying that I don’t like shorting into the type of action that we’ve seen over the last several months.

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