Crude Oil Price Forecast – Crude Oil Plunges in The Early Hours of Wednesday

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market fell fairly hard during the early hours of Wednesday as we waited for the crude oil inventory numbers later in the session. The $71.50 level has offered quite a bit of a resistance barrier, which makes a certain amount of sense considering that it was previous support. So, there is a lot of market memory there.

All of that being said, I think there’s probably a situation here where we could see buyers come into the market pushing to get back to that level. If we can break above the $72.50 level, then the market could go looking to the $75 level.

Brent Crude Oil Technical Analysis

Brent markets look very much the same, although Brent has a clear support level near the $72.50 level. Looking at this chart, it’s obvious for me, at least, that this is probably still a buy on the dip scenario, and I think we go looking towards the $75 level again after a bounce. The question, of course, is waiting to see whether or not we get that bounce after a fall. I don’t see any reason why we won’t.

If we break down below the $72.50 level, then the market could drop all the way down to $70, but that still, for me at least, only offers value as far as a buying opportunity is concerned. It’s also worth noting that we are still closer to the bottom of the overall multi-year range than we are at the top. So, one would have to assume sooner or later that value hunters come back anyway.

For a look at all of today’s economic events, check out our economic calendar.