Crude Oil Price Forecast – Oil Falls but Bounces After GDP in America

WTI Crude Oil Technical Analysis

The West Texas Intermediate crude oil market dropped below the $76 level pretty early during the session on Thursday, only to turn around as the advanced GDP numbers came out hotter than anticipated in the United States. With that being the case, it looks like traders are betting on more demand and perhaps the oversold condition is also bringing a bit of value hunting into the market as well.

With all of that being said, I do like the idea of buying this market, but I recognize it won’t necessarily be the easiest path higher. The $77.50 level and the $78 level above both could offer resistance, so be aware of that.

Brent Crude Oil Technical Analysis

Brent also fell rather significantly, well below the $80 level, but it is in the process of trying to recover. Because of this, I think you’ve got a situation here as well that value hunters have come back into the picture and I do think that given enough time, they will in fact jump in and try to push this market above the $81.50 level.

If we can break above that level, then it’s likely that you could see the Brent market go look into the $84 level if you give it enough time. I think at this point it is probably only a matter of time before the recovery picks up momentum and therefore, I remain bullish, but I recognize there has been a lot of damage to this market, and therefore you need to build a position slowly.

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