Crude Oil Price Forecast – Oil Continues to Look For Buyers

WTI Crude Oil Technical Analysis

The crude oil market in the West Texas Intermediate grade bounced a bit during the early hours on Thursday as we are trying to hang on to the 200 day EMA. Crude oil has been absolutely crushed over the last couple of days, but we are now starting to get into an area that should have a lot of support based upon previous action.

If we can turn around and break back above the $80 level on a daily close, then I think it’s a situation where buyers will jump in and try to push this market back towards the $83 level. On the other hand, if we were to break down below the $78 level, that could open up a bit of a trap door. If that’s the case, then one would have to think that oil traders are betting on a slowing economy.

Brent Crude Oil Technical Analysis

Brent continues to hang around the 200-day EMA as well, and if it can recapture the $84.50 level, then I think it’s likely that we will break towards the 50-day EMA. In general, I think this is a market that will be very difficult, but I also recognize that we are in an area where you would expect to see a lot of support. Because of this, I suppose it is probably thought of as a value proposition because quite frankly if we can’t pick it up soon, now that we are in the midst of driving season, that could be a bad sign.

Furthermore, you also have to keep in mind that it’s only going to take the wrong headline coming out of the Middle East to send this market straight back up into the stratosphere. So, with that, I think this is just noise, nonsense, et cetera. So, whether or not we can recapture that previous support level is what I would be watching in both grades of crude oil.

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