Crude Oil Price Forecast – Crude Oil Pulls Back Slightly

WTI Crude Oil Technical Analysis

The crude oil market has pulled back just a bit in general, and the West Texas Intermediate found itself below the $77 level in the early hours of Wednesday. However, we do see a little bit in the form of support at this point. And now the question is, can we build up enough momentum to turn things around and break out to the upside? At this point, I think the $78 region, perhaps extending to the $78.50 cents level is a major ceiling. If we can break that, then it opens up the West Texas intermediate crude oil market to the possibility of reaching $80.

If we pull back from here, we could see the market look at the $75 level as a potential support level underneath, which of course is a large round psychologically significant figure and probably a place where you would find options traders.

Brent Crude Oil Technical Analysis

The Brent market looks very much the same as it plunged below the $80 level at one point during the early hours. And now we are trying to see if $80 will continue to support this market. If it does, then we have to pay close attention to the $82 level because a move above that level opens up the possibility of a move to the $84 level.

If we turn around and break down below the $79 level, then I think we may drop to the $77.33 region, which is an area that had seen a lot of noise in the past. All things being equal, this is a market that continues to be volatile, but it almost looks like we’re trying to form an inverted head and shoulders, which of course is a very bullish sign.

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