Crude Oil Price Outlook – Crude Continues to Look Upward

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil Market rallied just a bit during the early hours on Tuesday as we continued to dance around the 200-day EMA. If we can take out the shooting star from the Monday session, I think that’s a very bullish sign. I do think we will eventually break higher than that, but we may have a little work to do right around this area, just above the $72.50 level as we head into the jobs number.

Remember, oil started rallying at the end of last year, and I think this is a reaction to inflationary pressures and the potential for some kind of resurgence of the U.S. economy, because quite frankly, the West Texas Intermediate Crude Oil Market is pretty much U.S. based. If we do drop from here, I think there’s support all the way down to the 50-day EMA. If we break out to the upside, I believe we’re going to see $80 sometime between now and the end of spring.

Brent Crude Oil Technical Analysis

The Brent Market, of course, has done very much the same thing. It is currently below the 200-day EMA and testing it. Brent is going to be a little bit different in the sense that it is more of an international market. So, I do think that it lags West Texas crude oil, but it should move in the same direction. Eventually, I do think we will get to the $80 level, maybe $82 after that.

Underneath, we have quite a bit of support near the $74 level with a 50 day EMA hanging around there as well. Again, both of these oil grades, if you’ve been watching my videos, recently have tested the massive floor in the last two years of trading and now are bouncing from there. So, it shouldn’t be a huge surprise that this is going on.

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