Crude Oil Price Forecast – Oil Continues to See Buyers on Dips

WTI Crude Oil Technical Analysis

The crude oil market bounced a bit early during the trading session on Wednesday, and as you can see in the West Texas Intermediate grade, the 200 day EMA has shown itself to be supported. This is a market that continues to look at the 80 level above as a potential resistance barrier and if we can break above there then it is likely that we truly take off to the upside and go looking to the 85 level. Short term pullbacks continue to get bought as the 200 day EMA and the 50 day EMA both sit below and offer plenty of support. I do expect to see plenty of buyers between here and there though, so keep that in mind.

Brent Crude Oil Technical Analysis

The Brent market rallied a bit during the trading session as well and at this point in time, it looks like it’s a little further from resistance, which is at the 84.50 level, but it still has the same attitude. It still has a lot of people out there willing to pick it up every time it dips. Keep in mind that supply has been dwindling for a while now. And we are getting ready to head into the important driving season in the summer. And that is going to continue to be something that people pay close attention to.

Furthermore, we have a lot of geopolitical tensions in the Middle East that could come into play as well, as of course, always is the case with crude oil. With all of this, I do like the idea of finding value on each dip, and I think the market is starting to come around to that attitude as well. For what it’s worth, the market is currently forming a bit of an inverted head and shoulders, and therefore, I think we are about to see a major breakout. If and when we get that major breakout, I think crude oil will be one of the more compelling markets to trade this year.

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